Cobalt Price Trend and Forecast

Cobalt Regional Price Overview

Get the latest insights on price movement and trend analysis of Cobalt in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Cobalt Price Trend for the First Half of 2024

During the first half of 2024, cobalt prices experienced a significant decline, largely driven by a combination of oversupply and weaker-than-expected demand from key sectors like electric vehicles, aerospace, and consumer electronics. The market was flooded with increased production from major suppliers, particularly in Indonesia, the Democratic Republic of Congo (DRC), and China, which exacerbated the downward pressure on prices. Despite the drop, producers were reluctant to cut output significantly, as cobalt production is often tied to the more profitable copper and nickel industries. This situation led to an ongoing oversupply, contributing to the bearish sentiment in the market.
 

Cobalt Price Chart

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Looking forward, while there is a growing acknowledgment of cobalt's critical role in achieving global net zero emissions targets, particularly in the energy transition, the market is expected to remain oversupplied in the near term. However, the International Energy Agency (IEA) projects a substantial increase in cobalt demand over the next two decades, driven by the rapid expansion of clean energy technologies. This anticipated demand surge underscores the need for new mining projects and the diversification of supply sources to mitigate risks associated with the concentration of cobalt production in the DRC. As the market adjusts, prices may begin to stabilize and potentially recover in the latter part of the year, depending on how supply and demand dynamics evolve, as well as the impact of ESG concerns on investor sentiment and production practices.

Analyst Insight

According to Procurement Resource, the price of Cobalt is expected to oscillate on the lower end of the pricing spectrum, at least for the adjacent quarters, as the present excessive supply and limited demand of the commodity is estimated to hamper the overall sentiments of the cobalt market.
 

Cobalt Price Trend for the Second Half of 2023

The market behavior of cobalt did not improve much in the second half of the year 2023, as well. After a sullen performance in the first half, the prices were observed to be fluctuating within a very confined limit for the majority of the said period.

The price graph exuded a borderline stagnancy in the pattern from the very beginning of Q3 in July to the month of November. However, a lackluster demand pattern from the alloy and electronics industry pushed the price trend down in the last months of the fourth quarter. Overall, a very weak market performance was observed in the global cobalt industry. The weak global economy hampered purchasing powers, and other geopolitical disturbances were also responsible for this sluggishness in the cobalt market.

Analyst Insight

According to Procurement Resource, the Cobalt market is expected to make a return in the coming months since the prices are likely to rebound with the improvement of procurement from the downstream electronics industry.
 

Cobalt Price Trend for the First Half of 2023

The prices of cobalt witnessed a consistent slump in the US and UK markets. The slow growth of the market prices was caused by a hike in supply rates. In the first quarter, the prices fell more sharply due to the weak automobile sector. In China, the production and sales of automobiles and new energy vehicles took a deep hit, which led to the plunging in the price trend of cobalt. The condition of the market further plummeted due to the rising level of inventories and the slowing down of the global economy.

In addition to this, the effects of the failure of two major banking units in the US not only hampered the market sentiments of North America but also disrupted the supply and demand equilibria in Europe. The battery market also did not provide any support, which ultimately led to the fall in cobalt prices.

Analyst Insight

According to Procurement Resource, the price of Cobalt is expected to face southwards as the procurement rates from the downstream batteries and automotive sector are estimated to decline.

Procurement Resource provides latest prices of Cobalt. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.