Suspension of Feedstock from DRC Fuels Price Rally in Chinese Cobalt Market
China’s cobalt prices are on a firm upward trajectory as the Democratic Republic of the Congo (DRC) continues its suspension of cobalt feedstock exports. Market participants expect this rally to continue unless the DRC government lifts its restrictions.
Supply Constraints Tighten Global Inventory
Cobalt prices in China could climb to ¥300/kg, driven by the ongoing shortage of intermediate products. “Prices are trending up due to tightened supply,” said one trader. “Whether they break through ¥300/kg will depend on policy changes.”
Despite stable cobalt production inside the DRC, the export halt has disrupted global supply. “Inventories outside the DRC could run dry in four months,” warned another source. “Firms with low stock levels may not survive such a disruption.”
China Heavily Dependent on DRC Imports
China imported 188,560 tonnes of cobalt metal equivalent in 2024, marking a 65% year-on-year increase, according to customs data. Notably, 99% of these imports originated from the DRC. Leading cobalt feedstock suppliers CMOC and Glencore dominate the DRC’s copper-cobalt mining sector. Their production plays a vital role in fueling China’s battery and EV material demand.
If the suspension persists, pricing pressure is expected to remain strong, potentially affecting the downstream battery manufacturing sector.
Leave a Reply
You must be logged in to post a comment.