Amendment to cobalt metal standard and alloy grades

This amendment involves the addition of Huayou cathodes into standard grade and the amendment of KLK cut cathodes from alloy grade into standard grade following market feedback.

This follows an open consultation period which can be found here. The consultation period ran from January 24 until February 29, and was then extended until March 8.

The amendment of the brand list is not a judgement on the quality of the brands, as we acknowledge there are superalloy usages for these brands and others.

However, pricing data collected has consistently shown Huayou and KLK cathodes have traded more in line with standard grade market dynamics than alloy.

Fastmarkets allocates brands into grades based on their predominate application and the market dynamics they share.

As indicated in the pricing notice at the launch of the consultation, data collection is ongoing to help inform a potential second brand consultation later in 2024.

The data collection would include but not be limited to the following brands: Hanrui cut cathodes, Tengyuan cut cathodes and Greatpower cut cathodes.

Fastmarkets consistently reviews cobalt brands and their designated grades.

Fastmarkets reviews all pricing data carefully to ensure that its price assessments reflect the “open and competitive” market level. Reporters therefore may apply expert judgement to exclude data deemed unrepresentative or unreliable, prior to consideration of the final assessment.

Following this consultation, the cobalt standard grade and alloy grade specifications can be found below:

MB-CO-0005 Cobalt standard grade, in-whs Rotterdam, $/lb
Quality: Min 99.8% cobalt metal; standard specifications of the following brands in original packaging: Katanga cathodes, Chambishi broken cathodes, CTT broken cathodes, Minara briquettes, Ambatovy briquettes, Norilsk grade 1 and grade 2 cut cathodes (production since January 2019), Sherritt briquettes, Huayou cut cathodes, Jiangsu (KLK) cut cathodes, Vale Long Harbour standard grade rounds (99.8% cobalt).
Quantity: Minimum 1 tonne, maximum 100 tonnes
Location: In-warehouse Rotterdam, duty-unpaid, customs uncleared
Timing: Within 30 days, other terms normalized
Unit: US$ per lb
Payment terms: Cash; other terms normalized
Publication: Daily. Monday to Friday, 3pm London time

MB-CO-0004 Cobalt alloy grade, in-whs Rotterdam, $/lb
Quality: Min 99.8% cobalt metal; standard specifications of the following brands in original packaging: Nikkelverk cut cathodes, Vale Port Colborne rounds, Vale Long Harbour alloy grade rounds (99.9% cobalt), SMM cut cathodes, Jinchuan cut cathodes.
Quantity: Minimum 1 tonne, maximum 100 tonnes
Location: In-warehouse Rotterdam, duty-unpaid, customs uncleared
Timing: Within 30 days, other terms normalized
Unit: US$ per lb
Payment terms: Cash; other terms normalized
Publication: Daily. Monday to Friday, 3pm London time

These prices are a part of the Fastmarkets minor metals physicals price package.

To provide feedback for the price assessments or if you would like to provide price information by becoming a data submitter to the cobalt metal price series, please contact Alex Cook by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Alex Cook, re: Cobalt Brand Realignment.’ Please indicate if comments are confidential.

Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.