• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login

    Investing News NetworkYour trusted source for investing success

    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Battery Metals Market
    Battery Metals News
    Battery Metals Stocks
    • Battery Metals Market
    • Battery Metals News
    • Battery Metals Stocks
    cobalt investing

    Cobalt Market Trends in 2010

    Investing News Network
    Dec. 28, 2010 08:07PM PST
    Battery Metals

    Cobalt consumption has increased in 2010 and this trend should continue in coming years, due largely to the mineral’s use in rechargeable batteries, like those found in hybrid electric vehicles. What makes the future of cobalt somewhat uncertain, however, is that the industry is unusually complex and concerns about conflict minerals continue to make headlines.

    By Damon van der Linde–Exclusive to Cobalt Investing News

    Cobalt consumption has increased in 2010 and this trend should continue in coming years, due largely to the mineral’s use in rechargeable batteries, like those found in hybrid electric vehicles. What makes the future of cobalt somewhat uncertain, however, is that the industry is unusually complex in some aspects, as the supply base consists of several groups of producers with different business models and economic drivers, including a significant volume of by-product producers primarily from copper and nickel mining operations.

    One primary factor influencing the potential instability of the future of cobalt mining is that a single country led the way in production in 2010—the political unstable and human rights abuse-ridden Democratic Republic of Congo (DRC)—contributing approximately 45 percent of the world’s supply. Amidst civil war and illegal mining operations associated with the trade of “blood minerals,” global supply in the coming years will be heavily dependent on mining policy in the DRC. As reported by Cobalt Investing News in early December 2010, human rights issues surrounding cobalt mining in the DRC were highlighted in recent Wiki-Leaks documents from the US State Department. The Tenke Fungurume mine located in southern DRC, run by Freeport- McMoran Copper & Gold Inc. (NYSE: FCX ), Lundin Mining Corp. (TSX:LUN ) and Gecamines, is suspected of being the cobalt mine in the Wiki-Leaks cable, and according to Freeport McMoran is expected to produce 250 million pounds of copper and 18 million pounds (8,166 metric tons) of cobalt per year.

    China is a growing importer of cobalt from the DRC, buying concentrates and intermediate chemicals for further refining abroad. This key developing relationship is an important aspect to watch in regards to the future of the cobalt industry.

    In spite of the increased demand and concerns about ethically questionable production sources, 2010 has been a fairly stable year in terms of cobalt prices, opening at $21 per pound in January and closing the year at $18 per pound in December. Prices peaked at about $23.6 per pound in February and dipped as low as $16.4 per pound in early December. One major development in the cobalt market is that futures contracts began trading on the London Metals Exchange in February of 2010, introducing regulated exchange pricing, transparency, risk management and clearing. As of December 24, 2010, the LME cobalt price was indicated at $38,000/40,500.

    Roskill Consulting, an international group that researches mineral industry information, estimates 2011 demand in a most likely case to be 72,500 tons. This forecast accounts for the potentially dramatic growth in batteries for hybrid vehicles and new demand from emerging markets such as China and India. The trend for cobalt consumption remains positive with batteries set to overtake superalloys as the largest market for cobalt by 2011, according to Roskill. They forecast the percentage of cobalt usage in batteries to rise from 25 percent in 2009, to approximately 45 percent by 2018.

    cobalt miningchinacobalt investingcobalt minecobalt marketindiacobalt industry
    The Conversation (0)
    Go Deeper
    AI Powered

    2011 Copper Trends

    Lead and zinc fundamentals diverge

    Latest News

    Incentive Regime for HMW Project in Argentina

    FPX Nickel Provides Update on Normal Course Issuer Bid

    EUR Sells 0.5m CRML Shares for U$1.8m (A$2.7m)

    Trading Halt

    Large High Grade Rubidium Resource Identified at Seymour

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Battery Metals Stocks

    Electric Royalties

     
    ELEC:CA

    Fortune Minerals

     
    FT:CA

    Glencore

     
    GLCNF

    Stillwater Critical Minerals

     
    PGE:CA
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×