Cobalt prices are at ten-month lows due to sagging demand from the electric vehicle and aerospace sectors amid the Covid-19 pandemic and look likely to slide further as airlines defer maintenance.
Airlines such as Australia’s Qantas, Qatar Airways and Singapore Airlines are looking to defer plane deliveries from Airbus and Boeing and this means postponed demand for cobalt and nickel alloys used in jet turbine blades.
But this is only part of the story.
"The harsh high temperature and pressure environments of the jet engine necessitates regular replacement of turbine blades," said CRU analyst George Heppel. "But planes are grounded, turbine blades aren’t being used and don’t need replacing."
Heppel expects cobalt demand for aerospace rotating parts to total 4 442 t this year, a drop of 18% from 2019 and the lowest since 2011. Overall, he forecasts a 6 300 t surplus this year and global consumption at 131 800 t.