Refined Cobalt Prices Rose in March but will Decline in April

SHANGHAI, Apr 13 - The monthly average price of refined cobalt was 305,300 yuan/mt in March, up 4% month-on-month but down 46% year-on-year. The prices are likely to drop in April.

Refined cobalt prices climbed in the first half of March. The spot supply from domestic leading refined cobalt manufacturers was tight due to deliveries to the the National Food and Strategic Reserves Administration. Meanwhile, the ex-factory prices of the leading manufacturers were still at a high level, and the inventory of traders was low. As such, prices of refined cobalt rose recently.

In the second half of the month, the prices of refined cobalt fell back from a high level. After the state demand for refined cobalt was fulfilled, a large amount of spot refined cobalt flooded into the market, resulting in an increase in supply. The market demand for magnetic materials and superalloys was weak, and there was even an absence of inquiries. Meanwhile, leading refined cobalt manufacturers lowered their ex-factory prices significantly. Therefore, given the current oversupply, it is expected that the prices of refined cobalt will fall in April.