Cobalt Metal is used to create parts in gas turbines, corrosion-resistant alloys, and rechargeable battery electrodes. It is also one of the key components for production and an EV metal.
Similar to the previous EV metal on lithium, future contracts for cobalt serve a similar purpose, it is a financial instrument that will allow producers, large consumers, and speculators to offset or assume the risk of a price change of holding a quantity of Cobalt over time.
Its essential role in electrical parts has also brought it to the spotlight in recent years, and the largest producers of cobalt currently are from the Democratic Republic of Congo, Russia, Australia, and the Philippines.
To learn more about this product, this post will cover key information about the related futures offered by SGX.
Cobalt Futures from SGX
Cobalt Metals futures from SGX are from Rotterdam which is Europe’s largest seaport.
Based on the price guide provided by fast market, the price of cobalt, standard grade, in-whs Rotterdam, was at $34.20 - 34.60 per tonne on Thursday, January 27. This was up from $18.50 - $19.30 per tonne on the corresponding date last year.
The increasing prices of cobalt are associated with the lack of supply and increased demand for the metal from EV industries. Therefore, to manage the momentum generated from the EV Metal and cobalt metal industry, SGX’s cobalt metal futures will allow both producers and consumers to hedge and manage risks more efficiently.
These energy metal derivatives contracts are also designed to provide a price discovery mechanism in the transition to greener sources of energy.
SGX’S Cobalt Hydroxide CIF China futures also provide a similar value and preposition for the Chinese market. Given the urgent circumstances and political shifts towards environmentally friendly alternatives, cobalt hydroxide demand and prices are also subjected to volatility.
SGX FM Cobalt Metal IN-WHS Rotterdam (Standard Grade)
Cobalt Metal is a material used to maintain the structural stability of batteries. This is significant for EVs as it entails increased battery life and energy density, furthering conservation efforts.
Demand and Supply-side factors affect the price of cobalt, the futures price of cobalt ranged between 28,000 and 70,098 U.S dollars per metric ton between August 2019 and September 2022.
The SGX Cobalt Metal Futures contract follows the following specifications:
The contract size for Cobalt Metal is 1 metric ton multiplied by the Contract price, with a minimum price fluctuation of one-hundredth of a United States dollar, equivalent to one-hundredth United States dollar per Contract.
Trading Hours are from Monday to Friday, at these trading hours:
Trading Day
7:10am - 8:00pm (T-session)
8.00.01pm - 5.15am (T+1 Session)
7:10 am – 8:00 pm (Last Trading Day)
SGX FM Cobalt Hydroxide CIF China Futures
Cobalt Hydroxide is used to boost the energy density and the life of the battery.
Fastmarkets’ Cobalt Hydroxide index, 30% Co min, Cif China settled at a year-to-date low of $7.44 per lb at the end of June.
The SGX Cobalt Hydroxide Futures contract follows the following specifications:
The contract size for Cobalt Hydroxide is 1 metric ton multiplied by the Contract price, with a minimum price fluctuation of one-hundredth of a United States dollar, equivalent to one-hundredth United States dollars per Contract.
Trading Hours are from Monday to Friday, at these trading hours:
Trading Day
7:10am - 8:00pm (T-session)
8.00.01pm - 5.15am (T+1 Session)
7:10 am – 8:00 pm (Last Trading Day)
Benefits Of Trading With SGX
SGX is Asia’s premier access point for capital and investment exposure, with a leading role to play in the clearing of financial and commodity products.
As a new initiative, SGX has incorporated both lithium and cobalt into its product offerings, at the same time, SGX also commands a significant share of the world’s Iron ore trading. This prior involvement in iron ore reaffirms the dependability of the exchange as well as its ability to serve as a key proxy for the state of the Chinese economy.
The benefits of trading with SGX include accessibility and efficiency, additionally, traders can look forward as the exchange continues to see an increasing number of participants over the past quarters.
Market News
In various news sources, it is reported that Cobalt prices are set for new highs in 2022. Miningdigital has also quoted Benedikt Sobotka, CEO of Eurasian Resources Group, that the market is severely short of cobalt, a key ingredient in the batteries that power electric vehicles (EVs).
On the other hand, China’s cobalt prices and cobalt hydroxide have been reported by fastmarkets to slide despite easing Covid-19 lockdowns. SP global also records a bearish performance as China’s COVID-19 lockdowns have highlighted an increasing disconnect between the metal and downstream cobalt product prices.
Specifically, fastmarkets’ cobalt hydroxide index settled at a year-to-date low of $7.22 per lb at the end of July while standard-grade cobalt, in-whs Rotterdam rallied 43% from $12.10-12.75 per lb at the end of July to $17.50-18 per lb at the end of October.
In light of the easing of tight Covid-19 procedures, the upcoming quarters are subjected to the judgment of traders as some continue to remain pessimistic toward the near-term cobalt market amid the oversupplied market for China’s cobalt and cobalt hydroxide, while demand from other parts of the world continues to increase.
Where To Trade Cobalt Metal or Cobalt Hydroxide
Trading lithium carbonate and lithium hydroxide from SGX is important for many reasons that affect both supply-side sellers and buy-side traders. Some reasons include managing price volatilities, budgeting the costs of raw materials, inventory planning, and pricing transparency.
To start trading in EV metal, clients can open a trading account with Orient Futures Singapore. Thereafter, as a clearing member of SGX, clients will have direct access to the market to trade the above-mentioned futures contracts.
Contact us through our omnichannel client service and trade today.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange(INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalized futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
We provide premium service at an affordable cost to all our clients, being there for you 24 hours on trading days to providing a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
Orient Futures Singapore has added USD/MYR NDFs to the list of products available. Clients can take advantage of this new opportunity to enter the fast-growing market while managing hedging exposure to liquid currencies. With USD as the most commonly used currency for settlement, traders that favour large trade volumes and smooth execution can contact us today.
