Tenke Fungurume in the DRC
Cobalt prices and stocks surged in China after the Democratic Republic of Congo extended its export ban to September, constricting supplies of the raw material used in alloys and batteries.
The country, which supplies about three-quarters of the world’s cobalt, said over the weekend that the suspension would continue “due to the continued high level of stock on the market.” It follows an initial four-month halt that began on February 22.
Prices for cobalt jumped about 10% on the Wuxi Stainless Steel Exchange. In Shenzhen, Chinese producer Nanjing Hanrui Cobalt rose as much as 14%, while Ganzhou Teng Yuan Cobalt New Material added 20%. Zhejiang Huayou Cobalt climbed 7.6% in Shanghai.
“We are likely to see an initial price spike, but real pressure will be later in the year as intermediate stocks begin to dry up,” said Thomas Matthews, battery materials analyst at CRU Group. “In short, strap yourselves in.” 