Cobalt prices have fallen around 60% to between CNY257,000 ($38,300) and CNY285,000 per mt, due to a long-term supply glut, as well as consolidation and an ending of subsidies in the Chinese electric vehicle sector. Total global supply rose nearly 20% to 145,400 tons in 2018. The price drop is also likely to be driven by new regulations that will require automakers to sell their vehicles at lower prices, which could lead to higher sales volumes. Huatai Securities predicted the glut would last into 2021, before the market tightened again.
Cobalt prices have fallen around 60% to between CNY257,000 ($38,300) and CNY285,000 per mt, due to a long-term supply glut, as well as consolidation and an ending of subsidies in the Chinese electric vehicle sector. The price drop is also likely to be driven by new regulations that will require automakers to sell their vehicles at lower prices, which could lead to higher sales volumes. Huatai Securities predicted the glut would last into 2021, before the market tightened again.