Metal Bulletin reported that there is a “complete disconnect” between what Chinese cobalt salt makers are paid for their products and the prices at which they buy feed.
As quoted in the market news:
Cobalt salt makers were already reporting losses last year amid tough market conditions. International metal prices have risen since the start of the year, meaning buyers are paying more for raw materials, which are sold as a percentage payable of the metal price. But salt prices have not risen on the spot market, owing to tough competition, sources said. While low-grade metal prices have dipped in recent weeks to $13.25-14.10 per lb, they have increased significantly since the start of the year. Low-grade cobalt began 2014 at $11.80-12.90 per lb.