![]() ![]() “Although more than 60 percent of this is from the Democratic Republic of Congo, this remains at risk from the supply chain constraints already mentioned,” Fisher said. The Democratic Republic of Congo was the top producer. Last year, cobalt mine output rose 12 percent year-on-year to 160,000 MT after falling in 2020. Looking over to cobalt supply, CRU was forecasting around 40,000 MT of mined supply growth in 2022. CRU’s forecast at the time was for 3.6 million additional new energy vehicle (NEV) sales year-on-year in 2022, with global penetration reaching 12 percent. “We now expect cobalt demand to be even stronger as EV sales continue to accelerate,” Fisher said. That’s why many experts predicted that cobalt demand would continue to enjoy healthy levels for the year. While conditions were seen easing in H2, the impact of the Russia-Ukraine war called that into question.ĮV forecasts at the start of the year indicated that the strong sales trend seen in 2021 would not slow down in 2022. “We expect that market tightness will continue while global supply chains remain constrained and keep intermediate payables high,” Fisher said. By the end of March, European prices were near US$40. Russia is the world’s second largest producer of cobalt, with 2021 output of 7,600 metric tons (MT), as per the US Geological Survey.Īfter averaging US$24 per pound in 2021, European metal prices started the year at around US$32, but rose on the back of constrained conditions and uncertainty around the war in Ukraine. “Russia’s invasion of Ukraine was of course the key shock which has tightened the screws further on the market,” he said. In Q1, cobalt's performance was mostly as expected, with tight conditions persisting and strong demand continuing from the battery market, Harry Fisher, then of CRU Group, told the Investing News Network (INN). What happened in the cobalt market in 2022?Ĭobalt market in Q1: Strong demand supports prices
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