TSXV:JRV - Post Discussion
Post by
CARSALESMAN on Nov 08, 2024 1:46pm
Trump Effect
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| Cobalt |
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| Fastmarkets - November 7, 2024 As the dust settles in Washington and Americans wake up to news that Donald Trump is once again president-elect, participants in the cobalt ... Cobalt market participants fear President-elect Trump could walk back EV legislature and impose stricter tariffs on Chinese-origin cobalt metal and EVs…President-elect Trump has said in the past his intentions to “end the electric vehicle mandate on day one” with his view being that he is “saving the auto industry from complete obliteration.”…But this may prove more difficult than it appears, with current and planned EV manufacturing hubs predominately appearing in his own Republican party states…“It’s too soon to say what the impact will be but the prospects of additional tariffs is definitely increased, Indonesian material might fall under that due to the joint-ownership, next year will be interesting,” a trader said…Some traders have looked to export Indonesian cobalt metal into the US because it currently has no tariffs imposed upon these materials. But other participants have queried the potential for tariffs due to the joint-ownership structure of some projects where Chinese companies hold stakes…Fastmarkets’ daily price assessment for cobalt, standard grade, in-whs Rotterdam was $9.75-11.80 per lb on Wednesday November 6…The US features prominently in the alloy-grade market for cobalt metal, with strong production hubs for commercial aerospace and defense applications, with medical usages and industrial gas turbines also a source of demand. Cobalt is preferred due to its high temperature and wear resistance…The US consumers are probably nervous for their sourcing requirements and not just for cobalt either, if tariffs get brought in for widespread material imports including non-Chinese cobalt too that will really hurt…Fastmarkets’ daily price assessment for cobalt, alloy grade, in-whs Rotterdam was at $14.35-15.40 per lb on Wednesday November 6…The US currently has a 25% tariff on Chinese refined cobalt metal, with much of the present metal oversupply refined in China and then exported to Europe…Some market participants believe the tariff could be increased to 60%. The impact of such a move has split opinion. | |
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