TRADE REVIEW: Lackluster demand to cap Asian cobalt prices in Q3 despite DR Congo supply risks

Asian cobalt prices are expected to remain under pressure in the third quarter as weak demand from the battery and consumer electronics sectors outweighs supply-side risks from the Democratic Republic of Congo. Although the DRC's forfeiture of unused export quotas could restrict future feedstock availability, market participants expect subdued downstream consumption to limit the upside potential for cobalt prices.

Although logistical bottlenecks and quota restrictions continued to limit cobalt exports from the DRC, lower downstream consumption and growing recycled supply reduced buyers' urgency to secure material. Lower prices also reinforced cautious buying behavior, with many consumers delaying purchases in anticipation of further price reductions.