Cobalt futures gained momentum to trade near to $70,000 a tonne in the second week of December, hoovering around a 3-1/2-year high of $71,750 touched at the beginning of July 2018, amid prospects that the metal will benefit from the green transition. Cobalt is used in the production of lithium-ion batteries, which is used to produce electric vehicles, so as it is expected that the demand for electric vehicles will grow - amid the green transition - the prices of Cobalt are trying to anticipate this scenario. Also, the metal has successfully outperformed its peers after the shock of the Omicron variant, while it is expected to continue gained momentum throughout a green transition, as the metal has low exposure to China’s property and construction sector, which would not be affected by any crashes in these sectors.
[I think we can assume it's hovering around a 3 1/2 year high, not hoovering, as cobalt is not used in vacuum cleaners]
Figaro
COB Price at posting:
37.0¢ Sentiment: Hold Disclosure: Held
