![]() “Chinese sulfate prices fell slightly below metal prices from the start of April after remaining at a premium since November 2020.”Īfter prices rose early in Q1, end users purchased ahead of their requirements. “European prices continued to be below Chinese prices, as has been the case for almost all of 2021,” Fisher told INN back in June. Prices adjusted down slightly through the period from a high of US$23 due to weaker spot market activity. Speaking with INN about how cobalt performed in the second quarter, Fisher of CRU said cobalt metal prices remained relatively steady through Q2 as expected.Įuropean cobalt metal prices averaged around US$21 per pound in the April to June quarter, a similar level to Q1. “However, with most major producers locking their supply into long-term contracts, spot availability is still expected to remain relatively tight going forward,” Miller said.Ĭobalt trends Q2: Steadiness continues for prices The DRC is the top cobalt-producing country by far. ![]() Looking over to supply, availability is expected to improve as logistics issues in Africa ease and several operations in the Democratic Republic of Congo (DRC) continue to ramp up production, according to Benchmark Mineral Intelligence. “Overall though our EV demand outlook has been strengthened, which more than offsets this.” “LFP has regained market share in the last 12 to 18 months, and this will have a small negative impact on cobalt demand,” he said. Low-cost EV models have been particularly popular in China, primarily relying on less expensive lithium- iron- phosphate (LFP) cathodes, according to Fisher. “Cobalt metal prices have been weak relative to raw material prices, leading to some Chinese metal producers temporarily halting production in early 2021 or switching to sulfate production to benefit from higher prices.”Ĭobalt is an essential element in the batteries used to power EVs, and EV sales remained strong in China, Europe and the US at the start of 2021. “The sulfate premium (was) particularly high, reflecting both strong EV market sentiment, as well as continued weakness in the European metal market,” he told INN in Q1. Prices were strong during the first three months of the year for a number of reasons, with Harry Fisher of CRU Group pointing to stockpiling from China’s State Reserve Bureau, EV market demand, raw material logistics issues in South Africa and a positive post-COVID-19 outlook as the main drivers. ![]() “I think the main surprise was the strength of demand in Q1,” he said. Cobalt trends Q1: Prices outperform expectationsĭespite the COVID-19 pandemic, which broke out in earnest during March 2020, cobalt prices showed unexpected resiliency in the face of uncertainty throughout that year.Īfter a year of relative stability, a combination of tight supply and rising demand from the battery industry saw prices outperform expectations for the first quarter of 2021, Greg Miller of Benchmark Mineral Intelligence told the Investing News Network (INN) back in March. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |