Cobalt.

What’s happening? Cobalt prices have leapt sharply in recent weeks on a multitude of factors. Ongoing supply issues in the Democratic Republic of Congo and South Africa have restricted cobalt hydroxide flow into China, significantly boosting import prices. Refiners have turned to the metals market to secure cobalt briquettes as a precaution against further price climbs and shortness of material. The Wuxi exchange in China jumped on speculative buying in the second week of August, adding to the upward pressure on metals prices. Although exchange prices then cooled, the wider market is still feeling the boost.

.
What next? Many traders expect prices to continue to climb, with most bullish through to the end of 2020. With several producers shut, sold out or operating at reduced levels, and traders keen to hold onto their units, higher prices may prove a self-fulfilling prophecy. A large portion of the market is firmly bullish in the long term and many consider a supply deficit inevitable if demand from the EV sector rises as they expect.