[SMM analysis] overseas alloy market demand has not yet recovered the price of electrolytic cobalt or will continue to decline.

Published: May 31, 2020 12:24

SMM, May 31:

At present, the price of electrolytic cobalt in the overseas market is 14.75 U.S. dollars / lb, which is basically stable compared with the previous week, but there is still no transaction in the spot market. Due to the lack of full resumption of work in the overseas downstream superalloy industry and the weak market demand for electrolytic cobalt, it is expected that overseas cobalt prices will still have downward space in the later stage.

Europe and the United States are the main consumer markets for electrolytic cobalt. The annual consumption of cobalt in China is less than 10, 000 tons, while that in overseas markets is about 15000 tons. Affected by the new crown epidemic, overseas aerospace and other places that need to use a large number of alloy products have hardly been consumed in recent months, and the market demand for electrolytic cobalt has been greatly reduced. Although the European government has made great efforts to promote the resumption of factories, according to feedback from SMM customers, the operating rate of factories in Europe is still on the low side.

Although recently, the price of electrolytic cobalt in China has continued to rise to 25-260000 yuan / ton (about 14.1 murals US $14.7 / lb) and gradually stabilized, but in fact there are few purchases in the spot market. The rebound in domestic prices is mainly due to the inflow of some funds into the market, while the major large consumers have enough raw materials in the metal cobalt price of 22-230000 yuan / ton (about 12.4 Mel 13.0 U.S. dollars / lb), and the existing inventory can still support the use of about 2 Mel for 3 months.

At present, the price gap of electrolytic cobalt at home and abroad has narrowed, the import and export window has not been opened, and the downstream demand of both markets is weak, and prices are lack of support. The downstream construction of metal cobalt in overseas market is slow, but the upstream supply has been restored one after another. Some suppliers revealed that there are almost no downstream enquiries in the spot market, and there are no orders for spot quotations to only about $14.2 / lb, and overseas electrolytic cobalt prices are expected to fall by about $0.50 / lb in the short term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Rwanda Seeks Indian Investment in Tantalum and Other Critical Minerals
28 mins ago
Rwanda Seeks Indian Investment in Tantalum and Other Critical Minerals
Read More
Rwanda Seeks Indian Investment in Tantalum and Other Critical Minerals
Rwanda Seeks Indian Investment in Tantalum and Other Critical Minerals
[SMM Flash] Rwanda is seeking greater Indian investment in its critical-minerals sector, highlighting tin, tungsten and tantalum (3Ts) among potential areas for cooperation. The opportunities were presented at an investment event hosted by the High Commission of Rwanda in India in Bengaluru. Rwanda is seeking to expand domestic mineral processing and capture greater value from its resources, while India is strengthening overseas critical-mineral supply chains through initiatives including its National Critical Minerals Mission. The initiative follows the first India-Rwanda Joint Trade Committee meeting held in New Delhi on July 30–31, where critical minerals were identified as a priority area for bilateral cooperation. Potential collaboration could include geological exploration, processing, investment and supply-chain development. However, no specific tantalum mine investment, financing package or offtake agreement was announced, meaning the development currently represents investment promotion rather than committed new supply. Greater Indian participation could eventually diversify investment and downstream channels within Rwanda's 3T industry.
28 mins ago
New Study Advances Understanding of Tantalum Behaviour Under Extreme Pressure
31 mins ago
New Study Advances Understanding of Tantalum Behaviour Under Extreme Pressure
Read More
New Study Advances Understanding of Tantalum Behaviour Under Extreme Pressure
New Study Advances Understanding of Tantalum Behaviour Under Extreme Pressure
[SMM Flash] Researchers have reported new experimental measurements of tantalum under extreme pressure and temperature conditions in a study accepted by the American Physical Society's Physical Review B on September 1. The researchers combined temperature measurements with simultaneous X-ray diffraction after shock compression and release. The body-centred cubic tantalum phase was observed at 142 GPa, while the experiments constrained melting behaviour at pressures up to 142 GPa and temperatures reaching approximately 5,880 K. The research does not indicate an immediate change in tantalum supply, demand or prices, but improves understanding of the metal's behaviour under extreme operating conditions. Tantalum's high melting point, corrosion resistance and thermal stability support its use in demanding technological applications, and more accurate phase-boundary data can improve material modelling under extreme environments. The study provides a framework for further temperature measurements of materials subjected to laser-driven dynamic compression.
31 mins ago
T.I.C. Highlights Growing Focus on Tantalum Supply Diversification and Recycling
47 mins ago
T.I.C. Highlights Growing Focus on Tantalum Supply Diversification and Recycling
Read More
T.I.C. Highlights Growing Focus on Tantalum Supply Diversification and Recycling
T.I.C. Highlights Growing Focus on Tantalum Supply Diversification and Recycling
[SMM Flash] The Tantalum-Niobium International Study Center (T.I.C.) has published its 2026 Annual Report, providing updates on the international tantalum and niobium industry. The report highlights continued industry attention to supply-chain resilience, including diversification of supply, recycling, secondary materials and by-product recovery. These developments come as the tantalum value chain continues to navigate geopolitical, regulatory, tariff and broader supply-chain risks. The report provides an industry assessment rather than a new quantitative tantalum market balance or spot-price forecast. The focus on alternative and secondary sources is significant for a tantalum industry exposed to geographical concentration in primary mineral supply. Greater recycling, by-product recovery and diversification could broaden feedstock availability and reduce dependence on individual producing regions. For downstream consumers, these developments may also support efforts to strengthen responsible sourcing and long-term supply security as demand for tantalum continues across electronics, aerospace and other advanced applications.
47 mins ago