COBALT SNAPSHOT: Katanga shutdown fuels price hikes; spot volumes pick up

Key data from September 16 pricing session.

Low-grade cobalt in-warehouse ($ per lb)

Today	Previous	Today’s weighted average of confirmed trades	Previous weighted average	Change to midpoint of range	Midpoint % change
12.20-13	12-12.85	12.64	12.73	+0.175	+1.5%

High-grade cobalt in-warehouse ($ per lb)

Today	Previous	Today’s weighted average of confirmed trades	Previous weighted average	Change to midpoint of range	Midpoint % change
12.20-13.30	12.20-13	12.28	12.60	+0.16	+1.2%

Key drivers:
– Recent cheaper offers, thought to be producer liquidation at end of quarter, appear to be drying up, although a few select buyers are still able to achieve low high-grade numbers

– Glencore’s stoppage at Katanga prompts sellers to raise offers

– Consumer demand picking up after quiet summer

Key quotes:
“I have canvassed the producers again and see no sign of weakness.” – Trader 1

“It’s been a busy couple of days and I’ve had quite a few sales. I raised my offers based on the Glencore news and secured the business.” – Trader 2

“The lowest offer I got was 12.30 on low-grade. Anything at $12 is long gone.” – Consumer 1

“It appears the market is close to turning up; but not quite yet. I have three low high-grade offers.” – Consumer 2

Trade log

September 16

Low-grade (per lb)
More than 10 tonnes at about $12.55

Small sale at about $12.40

About 5 tonnes at about $12.45

About 10 tonnes at about $13.35

About 10 tonnes at about $12.85

Less than 5 tonnes at about $12.45

Small sale at about $12.40

Small sale at about $12.20

About 5 tonnes at about $12.40

Small sale at about $12.65

About 5 tonnes at about $12.65

Small sale at about $12.05 (below Metal Bulletin specification)

High-grade (per lb)

Small sale at $13.25

Small sale at $13.25

About 5 tonnes at about $13.30

About 20 tonnes at about $12

Offer at $13.30

Offer at $11.90

Offer at $12.25

Offer at $12.50

Offer at $12.90

Offer at $12.75

Offer at $12

Offer at $12

Very small sale at about $13.25 (below Metal Bulletin minimum volume tolerance)

 
China (MB China domestic, min 99.8%, RMB/tonne)

About 10 tonnes at about 211,000

Offer at 213,000

Deal heard at about 203,000

Deal heard at about 209,000

Deal heard at about 207-212,000

Total volume of all trades confirmed since previous pricing session: 97.5 tonnes

Click here for Metal Bulletin’s cobalt pricing specifications
Click here for Metal Bulletin’s cobalt premiums specifications

Fleur Ritzema
fritzema@metalbulletin.com
Twitter: @FleurRitzema_MB