KeyBanc downgraded last time based on $15 price

1) Cobalt prices fell again on Friday as traders continued to book business at lower levels. Low-grade cobalt fell to trade at $14.50-15.75 per lb from $15-16.25 per lb previously, taking 99.3% cobalt to its lowest level since the end of June. Volumes improved in the high-grade market last week, but the renewed interest failed to stop 99.8% metal prices falling to $16-17.25 per lb from $17.50-18.50 previously. High-grade metal had been lagging behind the price correction in low-grade cobalt, but was now trading at its lowest level since the start of July. “It still seems like the market is going in one direction,” a consumer said, reporting several purchases last week for 99.3% metal close to the new MB low. As well as consumer purchases, traders also noted some consumer sales of metal in the market last week, taking this as a sign that buyers are anticipating further falls in the coming weeks. “This tells me the market is much weaker than we all thought,” one trader said, adding that he had submitted one of the highest bids for the business close to $14 per lb. A consumer tender held last week to buy cobalt was concluded around $14.50, market sources said. Producers dismissed the tender, saying it offered an opportunity for traders looking to price in material to push prices down faster than usual. “[The figure] $14.50 wouldn’t surprise me at all, but I never offered into the tender,” one producer said. “Someone is haemorrhaging [this] commodity.” Producer business was reported on high-grade cobalt at $17, while low-grade offers were reported at $15.35 in the first half of last week. With more fresh supply expected in the market this month from producers at Chambishi Metals and Central African Mining and Exploration Co (Camec), traders said that they are simply making money while they still can. “Why would Camec and Chambishi be bringing on cobalt now? If they bring on as much as they say they’re going to, cobalt will go to $8 – it’s madness,” the first trader said.
[Metalbulletin.com 05/10/09. Read source article? – See page 14]