Cobalt Price, page-3

Traders lock in forward sales as cobalt enquiries turn into business
The forward enquiries for cobalt that emerged in the market last week have turned into business for some traders, they told Metal Bulletin on Wednesday July 6.

Spot prices for Metal Bulletin’s benchmark assessments remained unchanged at $10.75-11.35 per lb for low-grade cobalt metal and $10.80-11.60 per lb for high-grade.

Last week, traders talked about enquiries for tonnage to be delivered over the four years to 2020, and over the past two days that interest has turned into booked business.

"It’s been a hectic morning booking cobalt forward," one trader in Europe said.

"One customer has booked 150 tonnes with three different parties, including us. We sold 48 tonnes for the whole of 2017 at $11.65 per lb."

Based on financing and storage costs, he calculated that such a price netted out at $11.25 per lb on a spot basis, towards the top of Metal Bulletin’s current low-grade range.

Nor was he the only supplier booking business.

Another trader said he had sold well over 20 tonnes of cobalt for delivery in the fourth quarter at just under $11 per lb on an in-warehouse basis, and that another tender for material was likely to be placed into the market on Thursday July 7.

"One big melter has been booking lots of business," he said.

Looking at the spot market through the prism of booked forward business led one trader to suggest spot prices should also be higher.

"I don’t think $10.75 is representative of where traders are now," he said, referring to the low end of Metal Bulletin’s current quote.

Still, one regular buyer in the spot market obtained over 20 tonnes of material in a competitive and well-publicised tender at $10.70 per lb, keeping the market pinned in place.

One source close to the process said that offers into the transaction had risen well above $11 per lb.
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