Global Cobalt Market Forecasted as 2,000T Oversupply in 2010

The global cobalt market is forecasted to become oversupply by 2,000 tonnes in 2010, though the supply and demand were almost balanced in 2009, according to Japanese trader source. A mining major has launched a large copper developing project in Africa, where cobalt is mainly produced. Along the project, cobalt output is expected to expand as a byproduct of copper and account for 15% in the global total supply in 2010. Global demand for cobalt is also forecasted to increase in 2010 but the volume growth would be limited due to the low demand for superalloys applied to airplanes.

Japanese trader source suggested the global cobalt supply is forecasted to total 60,000 tonnes per year in 2010, which was 52,000-53,000 tonnes in 2009. The main factor is that Freeport-McMoRan Copper & Gold (FCX) started Tenke Fungurume copper developing project in Congo in 2009.

The project is scheduled to produce copper at approximately 110,000 tonnes per year under the full operation with cobalt production at 8,000 tonnes per year. The project’s cobalt output was 1,000 tonnes in 2009 while is expected to reach 3,000-5,000 tonnes this year along the higher operating rate than in 2009.

In Africa, the operation of Chambishi Metals of Zambia seems to be recommenced, too. Chambishi Metals suspended the operation due to the dropdown of international cobalt market price. The cobalt production decreased to 500 tonnes in 2009 from 2,500 tonnes in 2008. Japanese trader said the mine restarted the production and Chambishi’s cobalt is delivered to Far East areas in February.