Meanwhile, CRU believes the market will be finely balanced in 2022 compared to the relatively wide deficit in 2021. All in all, Benchmark Mineral Intelligence is expecting the market to transition into a slight surplus in 2022. A key trend seen in the space was longer-term contracts on the back of rising prices. In terms of supply, output is expected to increase once again in 2022.Output from the DRC, the top-producing country, is expected to come from Glencore's (LSE:GLEN) ( OTCPK:GLCNF) ( OTCPK:GLNCY) Mutanda mine restart, increased output at Katanga and expansions at Tenke Fungurume. In 2022, Benchmark Mineral Intelligence expects cobalt demand from the battery sector to grow by over 30 percent, supported by new EV model launches and governmental legislation. Increased battery demand for automotive manufacturing will be accompanied by strengthened demand for cobalt.Ĭobalt Outlook 2022: Rapid EV growth to drive demand, resilience in prices. Beyond 2024, Fitch Solutions expects cobalt sulphate prices to head higher as demand from EV batteries continues to rise. This will support production and investment into new projects. As for cobalt sulphate prices, Fitch Solutions expects these to remain on an uptrend in the coming two to three years as demand from battery manufacturers continues to outstrip supply despite a healthy pipeline of cobalt sulphate projects set to come online between 20 onwards. “We expect the latter to drive cobalt demand in the coming decades,” says Fitch Solutions. The end use of cobalt is primarily in portable electronics (36.3% of global consumption), such as smartphones and laptops, while automotive applications also account for a big share (23%). This sentiment comes as Boeing, one of the largest aircraft manufacturers, plans to increase production of the 737 MAX to 31 planes/month in early 2022 from its recent rate of 19 planes/month at the end of the third quarter.Ĭobalt price to continue rising over next three years – Fitch Solutions. One reason that market participants anticipate higher cobalt prices is because of increased demand from aerospace sectors that were hit hard by the Covid-19 pandemic and related restrictions. Rising US cobalt prices are leading some consumers to change their buying habits as market participants expect growing US aerospace and lithium-ion battery demand to provide further support in 2022. Viewpoint: Aero support increases for US cobalt. IEA growth multiple forecasts from 2020 to 2040 UBS forecasts Year battery metals go into deficitĢ021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x UBS's EV metals demand forecast (from Nov. UBS cobalt supply and demand forecast - Growing deficits from 2023įortune Minerals Company Presentation - Courtesy UBSĬobalt demand v supply forecast - Deficits starting in 2026Ĭobalt demand v supply forecast by BMI - Deficits starting in 2026 Ĭobalt spot prices - 5-year chart - USD 31.71 More details on cobalt pricing (in particular, the more relevant cobalt sulphate), can be found here at Benchmark Mineral Intelligence or Fast Markets MB. LME Cobalt inventory is 261 tonnes, down from 271 last month. Cobalt price newsĪs of January 24, the cobalt spot price was slightly higher at US$31.71/lb, from US$31.42/lb last month. The past month saw a slower month for cobalt news with cobalt prices slightly higher. Welcome to the January 2022 cobalt miner news.
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