Slow contract signings lower imports of cobalt raw material in Jan-Feb

SHANGHAI, Apr 11 (SMM) – In January-February, imports of cobalt raw materials amounted to 9,200 mt in Co content, down 31.34% from 13,400 mt in Co content in the same period last year, showed data from China Customs on Thursday April 11.

Negotiations over long-term supply contracts did not fare well and this accounted for the drop in imports.

Supply growth of cobalt raw materials across the Chinese markets decelerated at a slower pace of some 10% for the same period, with contributions from bonded areas. About 3,000 mt in Co content of cobalt raw materials left bonded warehouses in the first two months of 2019, compared to 4,600 mt in Co content throughout 2018.

Prices of spot cobalt raw materials held stable, with offers for cobalt hydrometallurgy intermediate products exceeding $9.5/lb, and this will offer cost support to prices of cobalt salts.

China’s imports of cobalt raw materials stood at 3,826 mt in Co content in February, down 30% on the month and 28% on the year. Cobalt ore, based on a Co content of 8%, accounted for 635 mt in Co content. This gained 37% from a month ago but lost 24% from a year ago.

Intermediate products of cobalt metallurgy, by wet processing, took up 3,131 mt, based on a Co content of 27%, down 37% month on month and 28% year on year. The monthly average import price of cobalt hydrometallurgy intermediate products gained 5% from January to stand at $43,022/mt in Co content in February, down 20% from the corresponding month of 2018.