The fall in cobalt hydroxide payables has accelerated over the past week on increasing concerns about a slowdown in the global economy and electric vehicle (EV) production due to the global spread of the novel coronavirus (2019-nCoV).
Fastmarkets' cobalt hydroxide payable indicator fell to 65-68% against the standard-grade cobalt price (low-end) on Wednesday March 18, down 2.2% from 67-69% one week ago - the largest weekly drop since late November last year.Spot demand has languished over the past two to three weeks with the Chinese cobalt sulfate market under pressure from the broad acceptance that the 2019-nCoV outbreak would have a negative impact on domestic EV production and consumption this year. Market participants had already anticipated a downturn in comparison to 2019.
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