Umicore sees 25% fall in automotive demand across cobalt businesses

Demand for Umicore's products dropped significantly in the first quarter of 2020 due to the Covid-19 outbreak and the producer anticipates global automotive production to slump by 25% this year.

The "coronavirus-induced recession" is "significantly affecting demand in cobalt and specialty materials and precious metals chemistry," the Belgium-headquartered technology company said in its results statement on Thursday April 30.
The company makes alloyed powders for cutting tools, paint-drying chemicals and coloring agents for ceramics, which are all derived from cobalt.
Demand for these products in 2020 will be "well below" 2019 levels, Umicore said.
Cobalt prices have steadily ticked down since the virus took hold of global markets earlier this year.
Fastmarkets' daily benchmark price for cobalt, standard-grade, in-whs Rotterdam was $15.20-15.65 per lb on Thursday.

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