LME approves Huayou cobalt for delivery

The London Metal Exchange (LME) has added cobalt produced by Chinese cobalt metal producer Zhejiang Quzhou Huayou Cobalt New Materials to its list of brands approved for delivery.

The firm's cobalt cathodes produced on or after 16 July 2019 can be delivered against LME cobalt physical contracts.

Huayou produces around 25pc of global cobalt chemical products. It produces cobalt hydroxide, cobalt sulphate and lithium anode materials, as well as several copper and nickel products.

The firm in 2017 acquired a 14.7pc stake in Australia-based Nzuri Copper, which is developing the Kalongwe copper-cobalt project in the Democratic Republic of Congo (DRC). Huayou's copper/cobalt interests in the DRC include Mikas and Congo Dongfang International Mining. It also has smelting and refining facilities in China.

Other Chinese cobalt producers that are on the LME-approved brands list include Jinchuan, Yantai Cash Industrial and Green Eco-Manufacture.

Argus assessed prices for chemical-grade metal at $12.50-12.80/lb on 18 July, from $12.40-13/lb on 16 July. Alloy-grade prices were assessed down to $12.60-13.20/lb, from $13-13.40/lb.