Metal Bulletin reported that according to unnamed sources, the news that China’s State Reserve Bureau (SRB) plans to buy cobalt is likely to drive up prices for the metal.
As quoted in the market news:
Market participants expect several hundred tonnes of cobalt metal to be purchased by the SRB over the next few weeks. This will reduce supplies and drive cobalt prices, which have been rallying for the past few weeks, even higher, sources said. “It’s going to soak up a lot of units that traders have been sitting on, so it’s a game changer,” a trader said. “It’ll be interesting to see if there’s LME activity on the back of it,” he added. The official London Metal Exchange cash cobalt price on Friday July 11 was $31,000/32,000 per tonne ($14.06/14.52 per lb), up from 30,500/31,500 ($13.84/14.29 per lb) a day earlier, suggesting an immediate market reaction.