China imports less cobalt feedstock in 2020
Chinese imports of cobalt intermediate products and concentrates declined in 2020 following a shortage in supplies from uncertainty in main production hubs outside of China during the Covid-19 pandemic.
China imported 295,472t of cobalt intermediates produced through the hydrometallurgy process in 2020, down by 1.5pc on the year, according to customs data. December imports were 30,444t, down by 14.9pc from a year earlier.
Imports of cobalt concentrate totalled 52,938t last year, down by 41.8pc from 2019, with December shipments up by 22.2pc on the year to 3,220t.
Covid-19 lockdowns reduced mining and shipments of cobalt hydroxide from the Democratic Republic of Congo (DRC) and South Africa in the first quarter of last year and suspended mining in April-May. Availability has tightened since August on a slower-than-expected recovery in shipments and logistics services. This bolstered 30pc min cobalt hydroxide prices from $9.70-10.50/lb cif China on 7 January 2020 to $12.20-12.90/lb on 8 December 2020.
The South African government at the start of this year decided that the 20 land ports of entry that were open will be closed until 15 February for general entry and departure, to reduce congestion and the high risk of transmission, president Cyril Ramaphosa said on 11 January.
Market participants expect fresh Covid-19 lockdowns in South Africa to raise cobalt hydroxide prices, as the country is the only transit point for cobalt hydroxide supplies from DRC.
Cobalt hydroxide prices were last assessed at $13.20-14/lb on 19 January, up from $12.70-13.70/lb a week earlier on concerns over supplies from South Africa.
Cobalt consumers and traders have been taking measures to secure raw materials through direct investments or yearly contracts, and uncertainty brought on by the pandemic lingers on shipments and mining operations in the DRC and South Africa.China’s cobalt feedstock imports tonnes.
