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MetalBulletin reported that the strengthening US dollar is putting Chinese cobalt companies under pressure because while they sell their material domestically, they must buy on a dollar basis.
MetalBulletin reported that the strengthening US dollar is putting Chinese cobalt companies under pressure because while they sell their material domestically, they must buy on a dollar basis.
As quoted in the market news:
The increased cost of raw materials is having an impact on smaller cobalt companies in particular, but some major companies in China are also concerned, sources said.
‘When the yuan was appreciating it was favourable for us to import cobalt raw materials. We are thinking about ways to work around the stronger dollar now, but it seems there are no better options so we have to import. Cobalt resources are not in our hands,’ one major producer said.
Larger players are, however, able to benefit from the strong dollar in some instances by exporting finished products.
Click here to read the full MetalBulletin report.
