Glencore Plc is negotiating a one-year deal with Chinese firm GEM for the sale of about a quarter of its cobalt production, but the price has been a "sticking point" as the company and other major producers now have the ability to exert more influence during negotiations, Reuters reported March 6, citing sources familiar with the matter.
The source noted that the price and volume are still being discussed, with the estimated supply volume expected to be greater than 10,000 tonnes, and that Glencore was offering a fixed price instead of a discount to the monthly average price.
According to its full-year 2018 guidance, Glencore expects to produce up to 42,000 tonnes of cobalt, compared to 27,400 tonnes in 2017.
