Imports of cobalt raw materials to rise in October-November

SHANGHAI, Nov 4 (SMM)—According to SMM survey, cobalt prices trended lower in September-October but have stabilised recently. Inquiries for cobalt raw materials and trades rose. A small number of producers reported that they planned to delay the arrivals of raw materials at ports from September to early October, and the overall arrivals are expected to rise from October to November. According to incomplete statistics, domestic cobalt raw material stocks declined 1,300 mt (Co content) in September and are expected to fall 30 mt in October.

Imports of cobalt raw materials decreased sharply in September and that of cobalt intermediate products declined significantly than expected. There may be three reasons:

1. Cobalt raw material supply and small orders signed declined as the supply and logistics were affected by Covid-19 and mines produced by manpower affected exports.

2. Suppliers will also control their shipments when the annual discussions on long-term cobalt raw material supply agreement are in progress. Thus, domestic raw material inventories at smelters were less than expected, inquiries rose and the prices were firm.

3. The imports in September were mainly shipped from the end of July to August. New orders for raw materials at smelters thinned amid high prices.