
Price update
As mentioned, cobalt prices have been fairly flat this month. That trend started just as September came to a close — Metal-Pages reported on October 1 that concern about political uncertainty in Europe and the United States pushed the London Metal Exchange cobalt cash price to $26,400 to $26,600 per tonne from $27,800 to $28,000 per tonne. From there, prices continued to drop, with mainstream transaction prices for Chambishi 99.8-percent grade metal falling to $14.58 to $14.73 per pound midway through the month. Metal-Pages quotes a trader based in Southern China as saying that the fall was the result of a major producer adjusting its ex-factory price. Another said that "slow business and weak demand" were other contributing factors. A few days later, the news outlet quoted western cobalt prices not far off from that range. It placed cobalt 99.3-percent grade between $12.75 and $13.75 per pound and 99.6-percent material at $13.25 to $13.75 per pound. In that arena, prices were reportedly being driven by consumers hesitating to buy amidst the start up of year-end price negotiations. Currently, cobalt market participants are mainly wondering "whether Chinese buyers will switch to buying metal." One trade source told Metal-Pages, "[n]obody's quite clear about what's going to happen with China.aIt's a bit of a stand off really." Those hoping cobalt prices will indeed break $16 may thus want to keep an eye on what that country's buyers do next. Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.a Related reading:a Cobalt Prices on the Rise Following Summer Slowdown Will Cobalt Rise Above $16 per Pound in Q4? from Cobalt Investing News