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July 11, 2014

Cobalt market anticipates further price hike after news of SRB purchase

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MetalBulletin.com - July 11, 2014 - London

Cobalt market anticipates further price hike after news of SRB purchase

News that China’s State Reserve Bureau (SRB) plans to purchase cobalt metal is likely to drive international cobalt prices even higher over coming days, sources told Metal Bulletin.

Market participants expect several hundred tonnes of cobalt metal to be purchased by the SRB over the next few weeks. This will reduce supplies and drive cobalt prices, which have been rallying for the past few weeks, even higher, sources said. “It’s going to soak up a lot of units that traders have been sitting on, so it’s a game changer,” a trader said. “It’ll be interesting to see if there’s LME activity on the back of it,” he added. The official London Metal Exchange cash cobalt price on Friday July 11 was $31,000/32,000 per tonne ($14.06/14.52 per lb), up from 30,500/31,500 ($13.84/14.29 per lb) a day earlier, suggesting an immediate market reaction. No trades were shown on LME Select, however. “It will take time for the waves of knowledge to…

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July 16th, 2014, China's SRB could buy about 1,000 tonnes of cobalt, sources say