SunSirs: Supply Reduced and Demand Increased, Cobalt Prices Stopped Falling and Rebounded in February

Cobalt prices stopped falling and rebounded in February

According to the cobalt market analysis system of SunSirs, on February 27th, the price of cobalt was 218,000 RMB/ton, which decreased first and then increased compared to February 1st's cobalt price of 217,500 RMB/ton, with an increase of 0.23%; Compared to the price of 214,200 RMB/ton on February 21st, the cobalt price stopped falling and increased by 1.77%. The Democratic Republic of Congo expected to reduce exports and the supply of cobalt in the market was expected to decrease; March had entered the traditional peak consumption season, with an expected increase in demand; Overall supply decreased and demand increased, and cobalt prices stopped falling and rose in February.

The Democratic Republic of Congo was expected to take measures such as an export quota system to curb the decline in cobalt prices

At the Council of Ministers meeting in the Democratic Republic of Congo, the President called on the government to take emergency measures to better regulate cobalt sales and increase cobalt mining revenue. The President had requested an evaluation of whether it was necessary to implement export quotas or take other measures to maintain cobalt prices based on the proposal of the Strategic Mineral Market Regulation Agency. Although the policy adjustment in the Democratic Republic of Congo had a negative impact on the supply of cobalt in the market, the expectation of cobalt supply in Indonesia had been rapidly released, and the overall cobalt supply in the market remains sufficient.

Overview and Outlook

SunSirs’ data analysts believe that the Democratic Republic of Congo is expected to restrict exports and reduce supply; The cobalt market is expected to enter the traditional peak season in March, with demand expected to rebound. In the future, Indonesia's supply expectations are expected to be released, and the cobalt market is still oversupplied. Demand is expected to rebound in March, but the growth rate may be difficult to break through. The overall cobalt market is still oversupplied, and cobalt prices are expected to consolidate at a low level in the future.

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