April 20, 2015
Strength Remains in Cobalt Market on Anticipation of Supply-Driven Tightness
Strength remained in the cobalt market last week, as sellers set their sights higher on an anticipated shortfall due to Chambishi’s absence from the spot market.
Sellers felt little pressure to offer aggressively last week, although buyer demand was flat towards the end of the week, sources said.
ENRC’s Chambishi operation this month confirmed reports by Metal Bulletin that production of cobalt would stop for three months as a result of feed problems.
Chambishi is the world’s biggest cobalt metal producer, selling large volumes of broken cathodes to Asia, the USA and Europe.
Over 1,000 tonnes of metal are expected to be affected by the temporary closure. But the rumour mill was in overdrive last week, as the market speculated about whether the stoppage would last longer than planned, after Tony Southgate, head of the ENRC’s cobalt book, was understood to have resigned.
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