![]() ![]() One trader said there was a “double whammy” as Chinese cobalt refineries and consumers destocked due to weaker consumer demand, but the market was now asking “when does China come back” in terms of demand. Demand was hit by soft sales of portable electronics globally, draconian Covid-19 lockdowns in China and a shift in the Chinese electric vehicle market towards lower-range batteries that do not use cobalt.Ĭhina’s smartphone sales slumped to a 10-year low in 2022, according to research firm Counterpoint, and the batteries in electronic devices are made up of about 60 per cent cobalt versus generally less than 10 per cent for those used in electric cars. The supply surge was more than double the demand increase, leading to the price collapse. That was driven by Swiss commodities group Glencore ramping up production at Mutanda, the world’s largest cobalt mine in the Democratic Republic of Congo, as well as Indonesia emerging as a major producer. Global cobalt output increased 23 per cent or by 35,000 tonnes in 2022 over the previous year, according to Darton. “A lot of things converged at the same time to push the market down: the relaxation of logistics issues, weak consumer electronic sales and a technology shift towards lower or no cobalt EV batteries,” said Caspar Rawles, chief data officer at Benchmark Mineral Intelligence, a pricing agency. The increase comes despite western efforts to gain control over supply chains for critical minerals such as cobalt, lithium and nickel, which are essential for making electric-car batteries.Ĭhinese refining activity reached 140,000 tonnes in 2022, more than double its level of five years ago, as volumes processed in the rest of the world stagnated at the 40,000 tonnes mark, handing Asia’s largest economy a 77 per cent global share of refining capacity.Ĭhina’s growing role in cobalt supply comes as a 12-month rally for the metal has spun into reverse, with prices dropping 60 per cent to $16 a pound, from their peak above $40 a pound in May. Over the next two years, China’s share of cobalt production is expected to reach half of global output, up from 44 per cent at present, according to a report by Darton Commodities, a UK-based cobalt trader. The most important trading venue for nickel is the London Metal Exchange.China is set to tighten its grip on global cobalt supply, as the price of the key metal for electric-car batteries hits a 32-month low off the back of a surge in production. This demand cannot be met from Chinese nickel deposits, as a result of which China is one of the largest importers of nickel. Because steel production has increased substantially in China in recent years, the demand for and consumption of nickel is also increasing at a very fast pace there. Around one quarter of the global demand for nickel is met by recycling nickel scrap.Īround 40 per cent of global nickel output is consumed in Europe, followed by Asia and America. Nickel is also used in electroplated coatings. The most important use of nickel is therefore in the production of stainless steel and other metal alloys. Even a small amount of nickel can considerably improve the strength and resistance to corrosion of steel when used as an alloy, something which is made use of in the steel industry. ![]() Nickel is indeed very resistant to high temperatures and corrosion. This view was not refuted until the 18th century. For a long time nickel was not recognised as a metal in its own right, but was instead regarded as a non-meltable component of copper ore. ![]()
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