[Ferro-Alloys.com]Cobalt prices have been in a holding pattern over the past couple of weeks after a strong price decrease that began in mid-November. With many sources complaining of limited downstream spot demand and material offloading by Sumitomo, prices experienced decreases of almost $1 per lb for Co 99.8% material in November. The negative trend eased after ENRC reported that its Chambishi cobalt operation in Zambia would be running at 50% capacity for approximately six weeks following a power transformer blow-out. Presently cobalt prices seem to be holding at $12.00-12.50 per lb for Co 99.8% material, with the bulk of business being reported near the lower end of the range. Even though there has been a break in depreciation, spot business remains exceptionally quiet, sources said. With little expectation of change in either demand or supply for the remainder of the fourth quarter, sources anticipate the current price stabilization to remain until the New Year. “Business is really quiet,” said a source. “I don’t expect much change for the time being; prices should not change much until January.”

Many sources noted that if it weren’t December, the impact of ENRC’s cut in production could have been seen quite differently. “With it being the holiday season, the lack of demand should balance out and prices shouldn’t vary,” said a source. “We’ll have to see where the market is once January rolls around. If demand starts rising and production is still being affected, prices could jump significantly.”

Some sources noted that even though Sumitomo has reportedly been flooding the market with material to increase cash flow ahead of the New Year, the recent production cut at Chambishi seems to have stabilized prices for the time being. “It’s more or less balanced now,” added a source.” There’s not a lot of business to be missed because it’s December.”