[SMM Weekly Review] Refined cobalt price surged significantly

Published: Jun 26, 2025 15:25

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[SMM Weekly Review] This week, affected by the extended export ban policy in the DRC, both the futures prices and spot prices of refined cobalt on the Zhonglianjin market rose significantly. Supply side, most refined cobalt smelters maintained long-term contract supply, with limited spot order quotations. After several trading days of wait-and-see, traders gradually resumed quotations and refused to budge on prices. Demand side, inquiries from traders and end-users increased notably in the early week under the policy impact, with sporadic actual transactions heard. However, mid-week, as Zhonglianjin futures prices returned to fluctuations, market sentiment cooled, and some traders reported weakened inquiry intentions from end-users, with limited actual transactions. Overall, given the current high social inventory of refined cobalt in midstream and no significant improvement in downstream demand, even with the major positive news of the DRC's extension, most downstream producers maintained just-in-time procurement, resulting in subdued actual transactions. Refined cobalt prices are expected to return to a fluctuating pattern next week.

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

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