People familiar with the matter revealed that China plans to increase the strategic reserve of cobalt, which is only three months before the Chinese government's last purchase of cobalt.
Cobalt is a metal widely used in various fields such as electric vehicle batteries, aerospace alloys.
Bloomberg Society on Monday (October 23) quoted people familiar with the matter and said that the China National Food and Material Reserve Bureau, which is responsible for managing the commodity inventory of China, has agreed to purchase about 3,000 tons of cobalt.Earlier, five manufacturers and traders had held meetings with government officials in Beijing last Friday (October 20).
Cobalt is one of the battery materials that have fallen sharply due to rising global output this year.Due to the increase in the supply of the main Congo for cobalt and Indonesia, the global cobalt price has fallen by more than 60%since May 2022.
Bloomberg reports that the China National Food and Material Reserve can purchase some commodities to protect Chinese domestic manufacturers and military manufacturing industries from supply shocks.
The battery accounts for about four -fifths of the demand for cobalt in China, and cobalt, high -performance materials and ceramics are also required.
