After a steady decline since the start of the year, the LME cobalt cash price stabilised during March 2023, although at levels last seen at the end of 2020. Demand from the two main end-use sectors — traction batteries and consumer electronics, had been flagging — capped by weaker discretionary spending. Terminated or lowered government subsidies on electric vehicles in China and Europe are pushing battery-makers and automakers to cut costs, namely by favouring battery chemistries with little to no cobalt content, even as falling lithium prices are making such lithium-iron-phosphate batteries even more cost-competitive.
Cobalt consensus price forecasts were upgraded 2.15% for 2023, with the annual price averaging higher than current levels.
In the S&P Global table above, prices in RED represent a 1% or lower forecast. While prices in GREEN represent a 1% or higher forecast, compared with last month's consensus estimate target price.
Cheers
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
COB Price at posting:
38.0¢ Sentiment: None Disclosure: Not Held
