China to buy a massive amount of cobalt ! LONDON, May 23 (Reuters) - China plans to buy up to 15,000 metric tons of cobalt metal from local Chinese producers over the next few months for domestic stockpiles, three sources familiar with the matter told Reuters, adding that it would be a record amount for a single purchase.
The planned purchase would be a big increase as industry sources say China's state stockpiler - the National Food and Strategic Reserves Administration - bought 8,700 tons of cobalt metal last year.
China dominates the processing of cobalt, most of it from the Democratic Republic of Congo (DRC), where it is a byproduct of copper output. In metal form it is used in the defence and aerospace industries and also in magnets for communication.
Cobalt metal purchases by the National Food and Strategic Reserves Administration could offset some of the surplus in the market this year.
"It could be as much as 15,000 tons that would be the most I remember in one tender," one of the sources familiar with the matter said.
The National Food and Strategic Reserves Administration did not respond to requests for comment.
Two of the sources said some of the cobalt bought by the National Food and Strategic Reserves Administration could be for military equipment.
https://www.reuters.com/markets/commodities/china-state-stockpiler-aims-buy-up-15000-t-cobalt-sources-say-2024-05-23/
This is why the USA and Canada needs a safe local supply.