Cobalt oxide market in thin trading though the price keeps rising

12 Nov 09 – With cobalt oxide price keeping increasing from 235-245/kg (USD34.41-35.87/kg) to about RMB240-250/kg (USD35.14-36.60/kg), there are not many deals concluded in the cobalt oxide market. Most producers believe that cobalt oxide price will probably not go up dramatically further.
A producer in Zhejiang, with an output of about 100tpm of cobalt oxide, told Asian Metal that cobalt oxide market gets quiet and the price has gone up to about RMB245/kg (USD35.87/kg), higher than RMB240/kg (USD35.14/kg) last week. "There are not many deals concluded right now," said the source.
For the reasons, the source believes that demand is not strong, especially from export market, cutting by about 50% than the previous years. On the other hand, when it becomes cold, demand from northern regions will be affected to some extent. Furthermore, the source pointed out that there is large stock held by downstream factories. "As I learn from downstream factories, most of them hold stock enough for the production for about one month," said the source.
Another producer in Guangdong, with an output of around 10tpm of cobalt oxide, reported to Asian Metal that their deals are concluded at the price of RMB240-250/kg (USD35.14-36.60/kg) at present. With the price getting higher, they receive few inquiries and make few deals. "Most consumers are watching the market and traders have held stock at hand," said the source.
Therefore, the source is not too optimistic about the future market and he believes the price will not go up drastically in the near future.