[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 (GMT+8)

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
European APT Offers Drop to $2,700-3,100/mtu Amid Weak Demand and Lower Scrap Prices
11 hours ago
European APT Offers Drop to $2,700-3,100/mtu Amid Weak Demand and Lower Scrap Prices
Read More
European APT Offers Drop to $2,700-3,100/mtu Amid Weak Demand and Lower Scrap Prices
European APT Offers Drop to $2,700-3,100/mtu Amid Weak Demand and Lower Scrap Prices
[SMM Tungsten Express] European APT offer ranges shifted down to $2,700-3,100/mtu this week, retreating from previous levels. Some offers were heard at $2,700-2,750/mtu, with more low-priced quotes emerging, though actual transactions remained thin with no new spot deals concluded. Smelter long-term contract prices held above $3,000/mtu, with existing output largely pre-sold and limited spot availability. Scrap and ore prices fell in tandem, with buyers leaning bearish and a strong wait-and-see atmosphere. Some traders noted that as long as China cannot export feedstock, no new low-priced spot material will emerge, keeping the market in a stalemate. Overall, the APT offer center moved slightly lower, with near-term prices facing downward pressure amid weak demand and softer scrap and ore prices.
11 hours ago
More than 6,500 Madagascar residents file QMM pollution claim
11 hours ago
More than 6,500 Madagascar residents file QMM pollution claim
Read More
More than 6,500 Madagascar residents file QMM pollution claim
More than 6,500 Madagascar residents file QMM pollution claim
[SMM Titanium Flash] More than 6,500 people in Madagascar have filed a claim in London’s High Court against Rio Tinto over alleged contamination linked to its QIT Madagascar Minerals (QMM) ilmenite operation, Reuters reported on 30 September. The claimants, represented by Leigh Day, allege wastewater exposed communities to lead and uranium and seek compensation and remedial orders. Rio Tinto said it had been notified but had not received the claim documents. It said its water monitoring found uranium samples below detection limits and most lead samples below detection limits. QMM produces ilmenite for the titanium dioxide supply chain. The case places water management and community relations at a major African mineral sands operation under renewed scrutiny. The allegations remain unproven, and the filing itself does not establish any change in QMM production.
11 hours ago
【Flash | Outokumpu Trims October Surcharges for Several Moly-Bearing Stainless Grades】
11 hours ago
【Flash | Outokumpu Trims October Surcharges for Several Moly-Bearing Stainless Grades】
Read More
【Flash | Outokumpu Trims October Surcharges for Several Moly-Bearing Stainless Grades】
【Flash | Outokumpu Trims October Surcharges for Several Moly-Bearing Stainless Grades】
Outokumpu’s October 2026 North American coil alloy surcharges edged lower across several molybdenum-bearing grades. The surcharge for 316L 2.5% Moly fell 0.5% MoM to $4,291.96/t, while 316L/4404 declined 0.7% to $3,886.31/t. Duplex 2205 was broadly flat at $4,225.83/t. Surcharges for 904L and 254 SMO fell 0.8% and 0.6% to $8,236.48/t and $8,914.62/t, respectively. These are alloy surcharges rather than full steel prices and reflect nickel, chromium and other alloy inputs as well as molybdenum.
11 hours ago