The longer your outlook, the bigger the profit windfall will be for cobalt. The second catalyst revolves around how quickly the world makes its transition to electric vehicles. ![]() To put a little perspective on this, keep in mind that Glencore’s Mutanda mine accounts for roughly 20% of global supply and is the world’s largest source for cobalt.Īs you would expect, that has given cobalt investors a little bit of reprieve, with cobalt prices rising approximately 33% since the announced shutdown. In August of 2019, the world’s largest cobalt producer announced it was placing its Mutanda mine on care and maintenance due to weak prices. When 66% of the world’s mined cobalt is being extracted inside a country with a huge potential for geopolitical volatility, you can see how quickly a crisis could spring up. The first is the obvious state of the DRC. If nothing else, there are two bullish catalysts still open for cobalt investors. Unfortunately, this oversupply of cobalt doesn’t bode well for the near term, with a potential supply crunch not projected until as far out as 2023. With strong EV projections being released, there was a veritable rush for miners to take advantage of high prices. If you recall, more than two-thirds of the world’s mined cobalt stems from the DRC. Perhaps the biggest catalyst was triggered after the Democratic Republic of the Congo (DRC) boosted supply. Over the last two years, cobalt prices fell to around $12 per pound in July of 2019. Like I said, few other markets have felt this kind of pain since 2018. And it wasn’t long before more and more countries stated that they were banning traditional fossil-fueled vehicles.īut the good times didn’t last, as cobalt prices t umbled from record highs of nearly $45 per pound:Ĭobalt Supply and Demand: Our Electric-Fueled Future Robust projections were clear that demand for lithium-ion batteries would grow as more EVs hit the road. Investors quickly caught on to how critical blue gold will be for us going forward - regardless of whether we live in a high OR low carbon future! It wasn’t hard to see why prices had skyrocketed suddenly. The meteoric rise in cobalt prices that took place between 20 was followed by an incredible price collapse that cut 70% off its value. If you need up-to-date information on current prices for these materials, I would recommend checking with a reliable source such as a commodity pricing service or market research firm.Few markets have been hit harder over the last couple years than cobalt. It's important to note that prices for raw materials can vary widely depending on factors such as location, quality, and supply and demand dynamics. According to the London Metal Exchange (LME), the average cash price for cobalt in 2020 was around $14 per pound, down from around $16 per pound in 2019. Like tungsten, cobalt prices have been volatile in recent years due to fluctuations in supply and demand. According to the United States Geological Survey (USGS), the price of tungsten concentrate (65% WO3 minimum) in the United States in 2020 was around $245 per metric ton unit (MTU), up from around $210 per MTU in 2019.Ĭobalt is a metal used primarily in the production of rechargeable batteries for electric vehicles and other electronics. ![]() In recent years, the price of tungsten has been volatile due to fluctuations in supply and demand. Tungsten is a rare and valuable metal used in various industrial applications, including electronics, mining, and aerospace.
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