Cobalt Market Update (May 23, 2012)

Western cobalt prices were unchanged this week, with cobalt 99.3 percent trading between $14 and $14.75 a pound, 99.6 percent trading between $14 and $15 a pound, and 99.8 percent trading between $14.50 and $15.50 a pound as of May 22, Metal-Pages reported.

Prices for all three types of cobalt are below levels seen in February of this year, when all three grades were trading above $15.50 a pound.

Metal-Pages also reported that Chinese cobalt prices have not risen over the past five months, with cobalt metal 99.8 percent grade down RMB230/kg on May 22, compared with the highest point of RMB245/kg and the lowest point of RMB226/kg.

On the London Metal Exchange (LME), minor metals prices, which include cobalt, have been moving cautiously over the past couple of weeks as investor sentiment remains bleak due to the persisting Eurozone crisis. The official LME settlement cobalt cash price on May 21 was at $30,000 to 30,800 a tonne.

“The political deadlock that has followed the recent elections in Greece has significantly increased pressures in financial markets,” Credit Suisse said in a note. “The eurozone is once again at an important crossroad. Substantive policy responses are needed to stabilize the situation.”