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$SCTFF #4 Cobalt Prices To Rocket As Tesla And Apple Scramble For Supplies

http://oilprice.com/Energy/Energy-General/Cobalt-Prices-To-Rocket-As-Tesla-And-Apple-Scramble-For-Supplies.html

here’s a new metal in town, and it’s bigger than lithium—and hotter than any other commodity on the market right now.

Supply is fantastically tight and set to get phenomenally tighter.


#2 Cobalt Hoarding Has Already Begun

The battle for batteries is on, and cobalt is now taking the front-line position, while speculators are betting big, pushing up prices ahead of a major shortage.

A group of hedge funds in late February started a run on cobalt by amassing a huge stockpile because of its scarcity. This sent suppliers to Tesla and other EV makers into a mad rush to secure new shipments of cobalt, according to a 23 February Financial Times article.

Until now, there hasn’t been much to choose from outside of pure cobalt companies listed in China, so hedge funds have buying up the physical metal in a seriously bullish mentality. One trader told the Financial Times that they “decided that buying physical cobalt was the only way to get proper exposure to the cobalt price.”

Swiss-based Pala Investments and China’s Shanghai Chaos scooped up some 6,000 tonnes of cobalt and put it in storage, worth around $280 million at today’s prices. When they take it out of storage it is likely to be worth much more.

Since November, cobalt prices have rallied more than 50 percent, and this is only the beginning. Cobalt’s make impressive gains for 24 straight weeks.