FOCUS: Supply uncertainties lead cobalt-hydroxide market to fixed-price spot deals

Spot cobalt hydroxide deals are being concluded on a fixed-price basis while buyers and sellers seek to shield themselves from market volatility expected to come from measures taken to curb the global spread of the coronavirus.

News late last month that South Africa would enter a 21-day lockdown created uncertainty over the supply of cobalt hydroxide in the coming weeks and months. About 65% of the world's cobalt supply is mined in the Democratic Republic of Congo (DRC), much of which is then transported to and shipped out of Durban in South Africa.
Given the potential for extended lockdowns to affect regional production and logistics, market participants are bracing themselves for possible disruptions to cobalt supply while measures to manage the pandemic are enacted, sources said.
For suppliers, so far this has meant looking at alternative shipping routes. Some consumers are also looking to diversify their inflows through buying non-DRC-mined cobalt intermediates or picking up spot hydroxide units from stocks in Asian bonded warehouses or surplus refinery inventories.

Spot purchases such as this often come with nearby-delivery dates that can attract a fixed-price negotiation, rather...

China's gold holdings to central bank reserves still low

China has broad effect on gold market

Gold stocks mixed after previous week's huge gains

Large TSXV gold multiple driven up by high Artemis weighting

Monetary-driven precious metals outperform major base metals