[Ferro-Alloys.com]The cobalt market remained under pressure, as has been the case for the past several weeks. Despite an overall sluggish market, most sources have blamed the trade for the recent decreases. Sources speculate that many traders are looking to liquidate stocks ahead of the year-end and, as a result, prices have been under significant negative pressure. Prices are presently at $12-12.50 per lb for Co 99.8% material, compared to $12.3-12.75 per lb the week before. “There is limited business,” said a source, “but the decreases are not merited. Position liquidation is mostly to blame.” Others have noted that despite a quiet spot market, forward buying has remained steady. “I would say that there is a lot of sacrificial selling going on,” said a source. “There is a lot of pressure being exerted on spot prices.” Sales remain in small volumes as most buyers are only seeking supply for immediate needs and limiting their year-end books. Small lot transactions were reported as high as $12.68 per lb; however, the bulk of business was reported at $12.20 per lb.

Many continue to point to the ongoing decreases as a typical trend seen during the second half of the fourth quarter. With significant volumes of material available the market is likely to remain under pressure for the time being. The LME, as a result, has also experienced steady depreciation as prices recently closed at $11.79, a substantial decrease from $12.47 week-on-week.