Japan's domestic spot cobalt sentiment up on tightening supply
Tokyo (Platts)--2May2008
Spot prices of cobalt cathode traded domestically in Japan were around $47/lb, changing little from last week, but traders are expecting prices to inch up later in the month on possible tightening of spot supply overseas. Traders reported small deals of less than 10 mt done mostly at $47-48/lb, delivery costs and duty unpaid, for prompt deliveries from traders' warehouses in the country to consumers. There were also deals done at $46-47/lb, but fewer than last week. Deals at $48-48.50/lb were reported as well. Meanwhile, Zambia's cobalt production for the first quarter of 2008 fell 8.2% to 1,150 mt from 1,253 mt recorded in the fourth quarter of 2007. Cobalt producers notably in Africa, like producers of other metals, have been facing power supply constraints which have resulted in lower production figures. "The metal is not in short supply. When you request overseas sellers for an offer, you will get it. But the moment you ask for an offer, you are moving the prices up already," one Tokyo trader said, describing the tightness. A second Tokyo trader said an overseas trader offered $48.50/lb CIF Japan last week.
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
