Cobalt is one of the most used metals in both military and industrial applications. It is often used to create super alloys, which are among the main components in producing jet engines.
To better understand its price movement, benchmarkminerals.com discusses the factors that can affect the current price of cobalt.
U.S. National Defense Reserves
The United States is one of the largest consumers of cobalt. However, since the country doesn’t have any refinery production, the country is fully dependent on imports to get the amount of metal it needs. Therefore, the high demands will most likely have an effect on the price of the metal in the global market.
Increasing Demand from China
China currently tops the list as the largest consumer of cobalt around the world. According to PR News Wire, China’s consumption of cobalt went up by at least 5.3% YoY (year-on-year). China is also considered the largest consumer of plug-ins and also the largest producer. Last year alone, at least 507,000 PHEVs and EVs were sold in China, which is triple the number that was sold in the United States alone.
The price of cobalt can be affected by the country’s economic state. In fact, most experts even consider the price of the metal to be an indicator of the economic strength. That means the higher the price of metal, the stronger the economy.
There are several other factors that may affect the price of the trace metal. That’s why it’s important to know and understand that its price can be highly volatile. The best way to get an accurate prediction of its price movement is to consider each of the factors above sufficiently.