New transparency reflects properties of Chinese cobalt
exports
LONDON, Oct. 1, 2024
/PRNewswire/ -- Global commodity price reporting agency Argus is
expanding its suite of cobalt prices with the launch of a new daily
Rotterdam assessment for
Chinese-origin cut cathode. The launch will bring much-needed
clarity to the cobalt market at a time when there has been an
influx of Chinese material to Europe
China's exports of unwrought
cobalt metal to the Netherlands
jumped to 5,478t in January-August from 1,989t a year earlier, both
because of over-production and as a result of weaker-than-expected
demand from China's domestic
battery industry. Europe has borne
the brunt of China's increased
cobalt exports because US consumers are often unwilling to use
Chinese cobalt within their supply chains.
The flood of Chinese-origin cobalt moving to Europe has become problematic for existing
Rotterdam price mechanisms, which
have failed to sufficiently distinguish between standard
chemical-grade metal, alloy-grade metal and Chinese-origin cut
cathode. Conflating Chinese cut cathode with either of the other
products can be problematic, because the material is typically much
cheaper than other cathode, and more prone to variations in
grade.
Moreover, inside China, cobalt
hydroxide — an important battery material — is typically
priced using formulae themselves tied to European cobalt metal
prices. Lack of clarity about European prices could compromise the
basis on which hydroxide trades — a market that stretches far
beyond Europe.
Argus Media chairman and chief executive Adrian Binks said: "Our new assessments of
Chinese-origin cut cathode delivered into Europe provide vital market transparency.
Chinese cut cathode has consistently been trading at a discount to
standard alloy-grade and chemical-grade cobalt metal in
Europe – including it in an
existing Rotterdam price mechanism
runs the risk of reducing the precision of published prices.
Creating this additional price adds some much-needed clarity."
The new European price assessment for min 99.8% Chinese-origin
cut cathode will be assessed daily on a duty unpaid Rotterdam basis for 1t +/- 2% lots. It rounds
out Argus' existing suite of cobalt prices, which span the full
value chain across China,
Europe and the US.
Argus contact information
London: Seana Lanigan
+44 20 7780 4200
Email Seana
Houston: Matt Oatway
+1 713 968 0000
Email Matt
Singapore: Tomoko Hashimoto
+65 6496 9960
Email Tomoko
About Argus Media
Argus is the leading independent provider of market intelligence
to the global energy and commodity markets. We offer essential
price assessments, news, analytics, consulting services, data
science tools and industry conferences to illuminate complex and
opaque commodity markets.
Headquartered in London with
over 1,400 staff, Argus is an independent media organisation with
30 offices in the world's principal commodity trading hubs.
Companies, trading firms and governments in 160 countries around
the world trust Argus data to make decisions, analyse situations,
manage risk, facilitate trading and for long-term planning. Argus
prices are used as trusted benchmarks around the world for pricing
transportation, commodities and energy.
Founded in 1970, Argus remains a privately held UK-registered
company owned by employee shareholders and global growth equity
firm General Atlantic.
Trademark notices
ARGUS, the ARGUS logo, ARGUS MEDIA, ARGUS DIRECT, ARGUS OPEN
MARKETS, AOM, FMB, DEWITT, JIM
JORDAN & ASSOCIATES, JJ&A, FUNDALYTICS, METAL-PAGES,
METALPRICES.COM, INTEGER, Argus publication titles and Argus index
names are trademarks of Argus Media Limited.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/argus-launches-prices-for-chinese-origin-cobalt-delivered-to-europe-302263715.html
SOURCE Argus Media