9/26/2023 0 Comments Cobalt price per pound todayThe difference between trading assets and CFDs Remember, past performance does not guarantee future returns and never trade more money than you can afford to lose. Always conduct your own due diligence, looking at the latest cobalt futures news, a wide range of commentary, technical and fundamental analysis. Note that price predictions can be wrong and shouldn’t be used as a substitute for your own research. In contrast, economic data provider Trading Economics, as of 21 November, expected the average cobalt prices to rise to $50,973.05/tonne ($23.12/lb) by the end of the fourth quarter, falling to $48,136.31 ($21.83/lb) in 12 months’ time. The Cobalt Institute believed the overall commodity prices will fall because of the looming global recession, but did not give any price indication. Cobalt futures forecast for 2023 and beyondĪs a result of the geopolitical uncertainty and looming recession, analysts were mixed on the cobalt futures price in the short term. “Greater and faster EV adoption globally will put increased strain on cobalt sulphate availability, accelerated energy transition will require more cobalt in areas such as power generation and energy storage,” said the Cobalt Institute. In addition to the macroeconomic impact brought about by recession and inflation, the zero-Covid policy implemented by China, the world largest metal consumer, has also cut demand for cobalt. The metal prices have been volatile over the past five years, falling as low as $12/lb in 2019. The cobalt futures price peak in April this year remained below the 10-year high of $45/lb in 2018. According to CME cobalt futures history data, the metal price peaked at just under $40/lb in late April before falling in the subsequent months. In the first quarter this year, pent-up consumer demand for electronic goods and vehicles post-Covid were pushing cobalt futures prices higher. The rising global inflation has also cut consumer spending power, reducing overall demand for electronic goods. Recession weighs on global cobalt metal demand outlookĬobalt futures price has been falling since the second quarter of 2022, as growing recession fears dampened consumer demand for electronic goods. The FastMarkets-settled cobalt futures contracts on the CME were launched in December 2020 amid increased market demand for hedging and risk-management for the metal. The contracts are listed monthly for the current year and the next three calendar years. The contracts are denominated in US dollars and cents per pound.Īccording to the CME specification, the grade of cobalt must be at least 99.8% pure. Those cobalt futures traded on the CME are based on the price reporting agency FastMarkets’ indices on an in-warehouse Rotterdam basis. The contracts can be traded on exchanges such as the London Metal Exchange ( LME) and the CME. The metal is a key material in nickel-manganese-cobalt (NMC) batteries, which are used to power a wide range of products from consumer electronics to electric vehicles. What are cobalt futures?Ĭobalt futures are derivative contracts with standard grade cobalt as the underlying assets. So how do cobalt futures work and what’s next for the silvery metal? Here we take a look at the factors that are shaping cobalt futures price prediction and market outlook. The November contract for standard grade cobalt traded in the Chicago Mercantile Exchange ( CME) settled at $22.99 per pound (lb) on 18 November 2022, the lowest since July 2021 and down 11.6% compared to a month ago. Yet, the increased adoption of electric vehicles may support prices in the long term. US cobalt futures price fell to a 16-month low over the past month as the looming global recession reduces demand for the metal used in batteries. Cobalt futures may suffer in the short-term amid falling demand in China.
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