Fabled Silver Gold Corp T.FCO

Cobalt prices on the spot market in Europe ha

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Re: Cobalt News - Thursday, December 13, 2007 Title: Cobalt driven to new record high by strong demand Publisher: Reuters Author: Reporting by Pratima Desai; Editing by Michael Roddy -------------------------------------------------------------------------------- LONDON, Dec 13 (Reuters) - Cobalt prices on the spot market in Europe have risen to record highs near $40 a pound this week, driven by rising consumer demand and speculative buying, traders said on Thursday. The metal COB-CATH-LON used to make batteries and aircraft components was trading at $39.5 a pound compared with $38/$39 a pound last week. Prices are up by nearly 50 percent since January. "Demand has been strong and is getting stronger. There is some speculation involved as well," a UK-based trader said. "But the move is fundamental ... China is really struggling to get the raw material for processing cobalt." Traders said a lot of Chinese producers had closed because they couldn't get the concentrate, partly because of supply problems in the Democratic Republic of Congo. Rising demand from battery makers also played a part. "As contract negotiations come to an end, consumers have been diving into the stock market," a Europe-based trader said. London-listed miner BHP Billiton (BLT.L: Quote, Profile, Research) last sold high grade cobalt at $39.75 a pound and is offering at $43 a pound. "$43 is a little optimistic now, we may get there next year," the UK-based trader said. Cobalt COB-ING-LON from Russia's Norilsk Nickel (GMKN.MM: Quote, Profile, Research) last changed hands at $36.59 a pound. Norilsk is now offering at $38 a pound.