Cobalt Poised for Further Gains After Steady Summer Rise

London 26 August 2009 – Cobalt prices are poised to see modest gains in September on increased buying from battery producers and tightness in high-grade metal.  The majority of market participants polled expect cobalt to rise by between $1 and $2 per lb by the end of September following steady gains through the European summer.

Low-grade cobalt has been trading at $17.50-$18.50 per lb and high-grade cobalt has been trading at $18.80-$20.20 per lb since August 12.  Prices have been firming steadily through the summer on better demand and more bullish sentiment.

Low-grade cobalt was trading at $12.60-13.30 per lb at the start of June, while high-grade metal was changing hands for $13.50-14.50 per lb.  An increase in consumer enquiries this week has given traders and producers hope for a more active September.

“I have seen a lot more enquiries this week,” said one trader on Wednesday who has received interest for over 150 tonnes since Monday.

“I think it will go up steadily rather than rapidly. By the end of September we’ll be slightly higher, perhaps up by a dollar,” he said.

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