Cobalt LME 3m US$33,000/t vs US$32,000/t • Cobalt prices could...

Cobalt LME 3m US$33,000/t vs US$32,000/t
• Cobalt prices could have found the bottom following a year-long rout, however the prospect for the battery material remains highly uncertain as concerns about excess supply stalk the industry.

• While cobalt prices have lost two thirds of its value from a peak in April 2018, a flurry of trader and consumer interest spurred the biggest weekly gain since 2017.

• After spiking to ~$97,000/t amid fears of shortages as the EV industry rapidly expanded, a surge of output from top producer DRC reacted to rising prices.

• “There was that feeling that the price was getting very oversold and the elastic band was getting very stretched,” said William Adams, head of battery materials research at Fastmarkets. “But I don’t think this is the start of a major rebound. We’re still in an oversupply situation.”

• The long-term outlook remains robust on battery growth, with Roskill predicting demand to double in the next ten years.

• “We’re probably going to see a lot volatility because you will get short-term supply bottlenecks,” Bedder said. “This is almost a completely new market, and a very difficult one to forecast.”