China cobalt stocks surge after Congo unexpectedly bans exports
Cobalt stocks rose in China on Tuesday as a surprise export ban in the Democratic Republic of Congo lifted the near-term outlook for the material used in alloys and batteries.
Shares in Nanjing Hanrui Cobalt Co. jumped as much as 17% in Shenzhen, while Zhejiang Huayou Cobalt Co. rose as much as 7.8%. Meanwhile, CMOC Group Ltd., which has been ramping up its two giant mines in Congo, slipped 2% in Hong Kong.
Congo, the top producer of the raw material, is suspending cobalt exports for four months in an attempt to rein in global oversupply. The government also said it will prepare additional measures to balance the market. The news has sent shockwaves through the industry as Congo’s cobalt production accounts for about three-quarters of world’s total.
The move “could shrink the forecast oversupply for this year, though the extent of this will depend on whether producers curtail production or increase stocks,” consultancy Benchmark Mineral Intelligence said in a note.
The African nation’s production has increased in recent years thanks to the expansion from China’s CMOC, but that has also pushed down prices. Benchmark metal has dropped below $10 a pound, a level not breached for 21 years apart from a brief dip in late 2015, according to Fastmarkets data. Cobalt hydroxide, the main form of the metal produced in Congo, has slid below $6 a pound.
The ban could be a blessing for Indonesia, the second-biggest cobalt producer that’s seeing a growing share in the global market thanks to Chinese investment.
Congo’s policy could cut global cobalt supply by around 20,000 tons, but the market has adequate inventory to fill the gap, Xu Aidong, an analyst with Beijing Antaike Information Co. said on the sidelines of a Fastmarkets conference in Shanghai on Tuesday.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
We are responsible manufacturers of essential components. Manufacturing 80 million parts a week, we have over 1 billion parts in stock.
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
