SmCo and AlNiCo Permanent Magnets Manufacturer China Rare Earth Magnet Limited
Cobalt: Why does it suddenly increase the price so much?
Recently, the price rising of Cobalt is bringing a series of chain reaction at home and abroad, SmCo and alnico permanent magnets are more expensive than last year. According to the statistics, up to Mar. 1st, the LME spot price of Co has raised from $25500 per ton in Sep. 9th last year to $49990 with the amount of increase reach to 94.23%. It is said by the experts that the rising mainly result from imbalance between supply and demand recent years.
Different from the material like steel and coal, the price rising of them are mainly because the initiative output reduction domestically. As for Cobalt, the pricing rights chiefly lie in international market.
As a matter of fact, the boom of NEV greatly promotes the demand of Cobalt. The demand of Co for lithium battery and power battery are 5200 and 1440 tons respectively in 2016.
On the other hand, the supply shortage also contributes to the price rising. As Co is the co-product of Copper, the two metals always come from the same manufacturer. Thus, the collapsing of Copper in 2015 directly leads to the business bankruptcy or output reduction, which influenced Cobalt as well. Besides, particularly, the Congo government reorganized mines, which also leads to upstream supply short.
Under such condition, analyzed by experts, the Cobalt price will keep rising in the next two years. It is predicted that the shortage of Co in 2017 and 2018 will be 8800 and 11200 tons separately.
In view of the continuous price rising recently, if you have real demand of SmCo or AlNiCo permanent magnet,China Rare Earth Magnet Limited suggest you purchase as soon as possible.
