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Article: Cobalt industry impacted by overcapacity. (Specialties).
- Article from:
- Chemical Market Reporter
- Article date:
- November 18, 2002
- Author:
CopyrightCOPYRIGHT 2002 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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RECENT FINANCIAL turmoil surrounding the OM Group Inc. (OMG) has concentrated the focus of many analysts on the cobalt market, which has seen prices fall dramatically in recent years. OMG, the world's largest cobalt refiner, says that it will cut production in the fourth quarter, but there is little incentive for other producers to cut back, and the situation is unlikely to improve anytime soon.
Overcapacity has become the bane of the cobalt industry, causing prices to dip from almost $20 per pound in mid-1999 to about $6 to $7 currently. "Last year, there was a clear surplus in the market, and this is one of the reasons that prices have come down to where they ...