Market Briefing - May 18, 2009

In April and in early May prices stabilized. There has been a narrowing of quotes with the bottom of the range moving higher. High grade material is now being quoted in a range of $15-16.5/lb compared to $14.5-16.5/lb earlier in the month. The low grade quote is now in the range of $14.5-15.50 from $13.15-16.00/lb.

The slight tightening of the quotes last month reflected good interest from China, with unconfirmed rumours that the Chinese is buying some cobalt for its strategic stockpile alongside its purchases of base metals. However, more recently demand from China has weakened. We understand that battery manufacturers are now adequately stocked and have temporarily withdrawn from the market the country remains depressed.

> This article gives the introduction to our latest detailed analysis on the market. To access a full version of a recent detailed monthly report on the base metals markets plus a recent briefing update, click on the links below.

> Base Metals Market Briefing - December 9, 2008.

> Base Metals Market Briefing Update - December 16, 2008.

Disclaimer: Whilst every effort has been made to ensure the accuracy of the information used in this document, GFMS Metals Consulting cannot guarantee such accuracy and GFMS Metals Consulting does not accept responsibility for any losses or damages arising directly, or indirectly, from the use of this information.