Lithium and cobalt markets remained cautious during LME Week in London from October 19-23, as prices retreated from spring peaks and participants assessed weaker demand signals from China. Consumer electronics demand weighed on cobalt, while concerns about energy storage system demand pressured lithium sentiment.
Fastmarkets assessed cobalt hydroxide at $13.00-14.00 per lb on October 27, down from $14.25-15.00 per lb the previous day and below its 2026 peak of $26.00-26.25 per lb. The Democratic Republic of Congo is maintaining its cobalt export quota system through the end of 2027, although market participants also discussed the possibility of tighter quotas.
Potential production constraints in Indonesia added uncertainty. Media reports indicated that some nickel-cobalt producers were discussing capacity cuts at high-pressure acid leaching facilities amid limited sulfuric acid availability, water scarcity and higher production costs. The companies did not confirm the reported cuts.
Recycled supply also influenced the cobalt outlook. Global secondary cobalt supply is estimated at 36,000 tonnes in 2026, including 27,000 tonnes from China, according to Fastmarkets battery analyst Andre Cortesão. The figures were approximately 25% higher than in 2025 as stronger cobalt prices encouraged recyclers to process previously uneconomic black mass inventories. Market participants expect recycled cobalt availability to ease in 2027.
In lithium, Fastmarkets assessed battery-grade lithium carbonate on a cif China, Japan and Korea basis at $12.80-15.00 per kg on October 27, compared with a 2026 high of $24.50-25.80 per kg on May 11. Differences between buyer and seller price expectations limited spot trading, while refiners purchased spodumene on a hand-to-mouth basis and consumers continued reducing inventories.
Expected spodumene supply from Africa added to buyer caution despite shipment delays from Zimbabwe through Mozambique. Argentina, meanwhile, is expected to remain a source of lithium supply growth, with annual production capacity projected to reach approximately 275,000 tonnes of lithium carbonate equivalent by the end of 2026.
Source: fastmarkets.com
