Radioactive cobalt found at Glencore's DRC unit is good news for the metal
Glencore has a long history of curtailing supply to meet demand, and has long criticised rivals for producing too much and depressing prices
Glencore’s sudden discovery that some of its cobalt is radioactive could not come at a better time. After a surge in prices in 2017, enthusiasm for cobalt has been fading, partly because of a surge in new supply. But sentiment could be changing after Glencore’s unit in the Democratic Republic of Congo (DRC) suspended cobalt sales after detecting low levels of radioactivity. “It’s nice to finally have some positive news in the market,” Gordon Buchanan, a senior trader at Stratton Metal Resources, said by phone from London. Glencore has a long history of curtailing supply to meet demand, and has long criticised rivals for producing too much and depressing prices. The Swiss commodity giant curtailed zinc output at mines in Australia, Peru and Kazakhstan in 2015 when prices languished at six-year lows. It also limited coal output when prices were low. Metal Bulletin prices for refined cobalt have fallen 5.6% in 2018, but there have been more pronounced declines in the raw material. As s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.