OTCPK:KATFF - Post by User
Comment by
Cassius1977on Apr 11, 2019 8:05pm
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Post# 29616092
RE:RE:Cobalt Price Forecast
RE:RE:Cobalt Price ForecastLech1988 wrote: I wonder how they came up with this "small surplus" estimation. The market is oversupplied this year despite KAT export issue. If the build up of production from 4Q18/Cal19 (circa 30kt) is exported in 1Q19 (doubtful) and they are free to export freely all new production in Cal20 this is an enormous amount of supply hitting the market. There is nothing "small" about it. Marginal annual demand increase ( I think estimated around 10kt per year) is no where close to big enough to absorb this.
Glencore knows this hence why there seems to be zero urgency when it comes to resolving this export issue.
Just one thing I'd like to clear up. I believe the 27 000 tonnes of cobalt KAT has is cobalt hydroxide, which is about 50% heavier than Cobalt. In other words the cobalt contained in the stockpile is about .66 of the weight........still a big stockpile, but not as large as some might think.