Fastmarkets analyst William Adams and reporter Alexander Cook size up the cobalt market ahead of LME Week, which begins Monday October 11.
Cobalt got off to a quick start in 2021 due to strong demand growth from the electric vehicle (EV) sector, restocking and because of a constrained supply chain out of Africa. After starting the year at $15.30 per lb, Fastmarkets' benchmark standard grade cobalt metal price climbed steadily to $25.30 per lb by mid-March, a rise of some 65%. Highlighting the disrupted supply chain across southern Africa was the rise in the cobalt payables that climbed to 93.5% in March, from 82.5% at the start of the year.Since March, the market has quietened down considerably with metal prices initially pulling back while the market destocked after the price climb,...