[SMM Weekly Review] Refined cobalt price surged significantly

This week, influenced by the extension of the export ban in the Democratic Republic of the Congo (DRC), both the futures and spot prices of refined cobalt on the Zhonglianjin futures market saw significant increases. On the supply side, most refined cobalt smelters continued to supply under long-term contracts, with fewer spot order quotations. After observing the market for a few trading days, traders gradually resumed quoting and maintained their refusal to budge on prices. On the demand side, inquiries from traders and end-users increased significantly at the beginning of the week due to the policy impact, and sporadic actual transactions were heard. However, by mid-week, as the futures prices on the Zhonglianjin market returned to volatile trading, market sentiment cooled. Some traders reported that end-user inquiry intentions weakened, and actual transactions remained limited. Overall, due to the currently high social inventory of refined cobalt in the midstream and no significant improvement in downstream demand, even with the major positive news of the DRC's export ban extension, most downstream producers still maintained a just-in-time procurement rhythm, and actual transactions remained sluggish. It is expected that refined cobalt prices may return to a volatile pattern next week.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lv 021-20707875

Wenhao Xiao 021-51666872

Zhicheng Zhou 021-51666711