If anybody is out there, here is some interesting news on cobalt.
TOKYO, Nov 18 (Reuters) - High-grade cobalt prices rose further in Asia on continued strong demand, while Russian-grade cobalt failed to match the advance in high-grade material ahead of planned U.S. stockpile sales, traders said on Tuesday.
''The market for high-grade cobalt feels quite tight,'' said one trader at a major trade house. ''If you really need the metal, you probably have to pay close to $26 (per lb).''
Traders ascribed the shortage in high-grade cobalt to Canada's Falconbridge Ltd (Toronto:FL.TO - news) having stopped offering the metal on the spot market here, and Gecamines of former Zaire running out of stocks.
A source close to Gecamines, the state-owned mining firm in the Democratic Republic of the Congo, said the company's stocks had plunged to 2,000 tonnes from 4,000 tonnes at end-1996.
The shortage comes at a time when Japanese demand from super-alloy makers, hard tool and electronic industries remains surprisingly strong, traders said.
High-grade cobalt was quoted $24.50/$25.50 per pound, while low-grade cobalt was assessed at $19.00/$20.00.
Some traders said a rise in the price of low-grade cobalt was seen capped by a handful of major traders, who hope to buy at lower prices at the U.S. Defense National Stockpile Tender of 500,000 lb of cobalt on Wednesday.
In the molybdenum oxide market, prices stopped declining and stabilised around $3.50 per pound in slack trade.
''Though prices have come down quite a lot, there isn't that much supply. You don't get any response, when you ask for prompt shipments,'' a trader said.
Traders agreed, however, that few Japanese consumers needed to buy the metal on the spot market amid declining demand.
Some estimated that Japanese consumption of molybdenum oxide would drop towards 42 million pounds next year due to expected production cuts by the automobile industry after surging to 45 million to 46 million pounds this year.
In the magnesium market, prices for Chinese material slipped to around $2,400 per tonne.
Traders said China was trying to boost sales in Asia to make up for a decline in European sales.
In Japan, the dollar's advance against the yen was pushing up the metal's price ahead of price negotiations in December for first-quarter 1998 contracts, they said.
''We'd like to see a price hike of 10 to 20 yen per kg,'' said one trader at a major trading house.
Domestic demand was weakening, reflecting stagnant business in the beverage can sector and from window frame makers.
One trader said beverage can makers were being hit by increasing use of polyethylene terephthalate (PET) bottles.
A lack of cash was plaguing Chinese minor metals traders, who said they saw no improvement in business before the Chinese New Year, which next year is in late January.
''The end of the year is book-squaring time, so whatever cash is around is used to pay back bank loans,'' a trader in the southern city of Guangzhou said.
A trader in Hong Kong reported many cobalt inquiries from China, especially for residues.
''But it is very, very difficult to find material,'' he said, adding that his usual sources in Zaire had run dry after three years of destocking.
Indium was firming with a firm undertone that saw prices basis C&F Rotterdam at $2.60/3.00 per kg, traders said.
Bismuth prices were seen stable, with little availability from South America and buoyant demand in the U.S., a European source said.
''One large consumer has bought a couple of hundred tonnes from China in the last two to three months,'' he said.
''China produces 1,200 tonnes year, it uses 600 tonnes domestically, so that leaves 600 tonnes. So there is not much bismuth left in China,'' he said.
- Nao Nakanishi, Tokyo Commodities Desk (813) 3432-6179
- Lynne O'Donnell, Shanghai Newsroom (86) 21 6279-8544
email: tokyo.commodit.newsroom@reuters.com
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