Low Supply, DRC Uncertainty Pushing Cobalt Prices Up

Mining Weekly reported that the price of high-grade cobalt has been on the rise since the beginning of the year and is now sitting at $13.50 per pound. The price is being pushed up by low cobalt supplies and uncertainty about the availability of concentrate from the Democratic Republic of the Congo.

As quoted in the market news:

“Prices are nudging up due to the uncertainty and we’re seeing a bit of buying ahead of the ban coming into force in a market that is already tight,” said one physical trader.

Congo tried to introduce similar rules in 2007 and in 2010, but each time the decision was reversed and the practicalities of processing the ores in the country have come under scrutiny.

“They don’t have much electricity and that could pose a problem in terms of the process of refining the metal,” an industry source said.

“It may take years to get that infrastructure in place. I think ultimately common sense will prevail about the feasibility of this plan.”

Click here to read the full Mining Weekly report.