[Minor metal] Crude Cobalt Hydroxide Will Appear in Domestic Market in 2H2009

SHANGHAI, May 7 (CBI China) -- Sources report that a large volume of crude cobalt hydroxide from Freeport-McMoRan Copper & Gold Inc. and other companies will flow into Chinese market gradually during 2H 2009.

    The market insiders predict the import volumes in 2H 2009 will reach 4kt. As the cobalt content of crude cobalt hydroxide reaches 30%, much higher than current cobalt ore (5-6%), so it has the advantages of high recovery rate and low freight charges, which can be very competitive in Chinese raw material market with demand of 20kt/yr. Hence, the crude cobalt hydroxide will gradually take up more shares in raw material market during 2H 2009, and the impact of cobalt ore giants on Chinese cobalt market will be reduced, then Chinese cobalt products producers will have more high-quality raw materials as a choice. However, the imported crude cobalt hydroxide will be affected by the demand, production and the policies of suppliers, so more attentions should be paid to the situation.

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