Latest news with #exportban
Yahoo
2 days ago
- Business
- Yahoo
IXM declares force majeure due to extended Congo cobalt export ban
IXM, a commodity trader owned by China's CMOC Group, has announced a force majeure on deliveries of cobalt from the Democratic Republic of Congo (DRC), the world's major producer of cobalt, as reported by Reuters. The announcement follows DRC's decision to extend its export ban on the battery material. In February 2025, the DRC initially implemented a four-month suspension of all cobalt exports to address oversupply issues and support prices, which were then around $10 per lb. DRC extended the suspension for an additional three months, with the possibility of modifying, extending or terminating the suspension before the new deadline in September. CMOC, the top cobalt-producing company globally, has projected its cobalt output to be between 100,000 and 120,000 tonnes (t) in 2025 at its Tenke Fungurume Mining (TFM) and Kisanfu Mining (KFM) sites in the DRC. This compares to 114,000t produced in 2024 and 56,000t in 2023. TFM and KFM are the suppliers for IXM, which stated on a social media post that the export ban has "rendered it legally and practically impossible for IXM's suppliers … to export cobalt products from the DRC". In the first quarter of 2025, CMOC reached a record high for the period with copper output at 170,574t - a 15.65% year-on-year increase - while cobalt output rose by 20.68% year-on-year to 30,414t. Cobalt prices on COMEX have seen a recovery since the initial ban in February, with current prices nearing $16 per lb. Other mining giants, such as London-listed Glencore and Eurasian Resources Group (ERG), also declared force majeure on certain cobalt deliveries after the DRC's export ban. "IXM declares force majeure due to extended Congo cobalt export ban" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
6 days ago
- Business
- Reuters
Congo's cobalt dilemma unresolved by extended export ban
LONDON, June 27 (Reuters) - The Democratic Republic of Congo has extended its ban on exports of cobalt by three months as the world's dominant producer of the battery metal tries to convert its supply power into pricing power. After rallying sharply in February, when the market was caught out by news of the original ban, the price reaction this time has been more muted. Some sort of extension was widely expected. Moreover, it has become clear the physical supply chain has so much accumulated inventory, Congo's muscle-flexing has yet to faze buyers. Neither are investors buying into an imminent turnaround in the market. Cobalt Holdings, which planned to list a physical cobalt investment vehicle, pulled its initial public offering on the London Stock Exchange earlier this month. Congo's cobalt dilemma is how to restrict supply of a metal that is mined as a by-product of copper, an even bigger revenue earner for the resource-rich country. It might do better to focus on its own role in the supply chain. It takes around 90 days to ship Congo's intermediate cobalt product to China for refining, meaning the full impact of the February export ban is delayed. China's imports of Congolese cobalt remained robust at over 50,000 metric tons in both March and April. Moreover, the Chinese supply chain is still bloated from consecutive years of market surplus. Consultancy Benchmark Mineral Intelligence estimates stocks of cobalt outside Congo amounted to 8-10 months of global consumption in the second quarter of this year. Even with extended export controls by the world's largest producer, BMI reckons cobalt hydroxide stocks in China will only become physically low towards the end of next year. The shift by Chinese electric vehicle manufacturers away from cobalt chemistry is compounding over-supply. The country's consumption of cobalt sulphate by the battery cathode sector fell last year, according to analysis by Shanghai Metal Market compiled for the Cobalt Institute. And since DRC has only stopped exports not production, stocks of intermediate cobalt are also piling up in Congo. Cobalt's by-product status means Congo cannot easily follow the lead of Indonesia, which has started using mine quotas to limit production of nickel, another battery metal with bombed-out pricing. Any mining restrictions on Congo's cobalt producers would inevitably impact production of copper, which is currently in hot demand. The London Metal Exchange copper price is riding high at close to $9,900 per ton given tight markets for the raw material and refined metal. Chinese operators in Congo, such as CMOC Group ( opens new tab, have every incentive to keep digging as much copper out of the ground as possible. The cobalt comes free with it. Congo is the world's largest cobalt-producing country and CMOC is the largest producing company. With limited leeway to force companies such as CMOC or Glencore (GLEN.L), opens new tab to produce less cobalt without forfeiting copper revenues, the government has been considering an export quota system. Enforcing export quotas rather than the current blanket ban, however, would be operationally tricky and would not tackle the inventory accumulating in the country. The potential for a renewed flood of Congolese supply in the event of a policy change would weigh heavily on the cobalt price. The Congolese government looks set a long stand-off with the cobalt market and it is not even clear what price level it is targeting. If it aims too high, there is a risk it will accelerate cobalt's loss of market-share in the battery sector. Congo is finding out that controlling supply and controlling market price are two very different things, particularly when the other end of the cobalt supply chain is thousands of miles away in China. It could do worse than look at another Indonesian tactic, which is to link exports to commitments to build downstream processing capacity. Indonesia has successfully used this linkage in both the nickel and copper sectors, where two new smelters are firing up this year as a result of ever tighter controls over exports of copper concentrate. While Congo is likely to struggle to exert lasting control over the cobalt price, it can use its dominant supply position to determine where it sits in the supply chain. In itself, that will not solve the problem of over-production of what is a copper by-product, but it would mean more revenue for each pound of metal dug out of the country's rich resource base. The opinions expressed here are those of the author, a columnist for Reuters.
Reuters
7 days ago
- Business
- Reuters
Russia's cartel office proposes complete gasoline exports ban, sources say
MOSCOW, June 26 (Reuters) - Russian Federal Anti-Monopoly Service (FAS) has proposed a complete gasoline exports ban to tackle high fuel prices, three industry sources told Reuters on Thursday. Currently, there are restrictions only for a small portion of gasoline exports by re-sellers, while oil companies still have licenses to sell the fuel abroad. The restrictions are in place until August 31. FAS declined to comment. The decision on possible exports ban is taken by the government, while the regulator is able to put forward its proposals. The proposals to tighten the restrictions came as Russia's domestic gasoline wholesale price on a commodity exchange jumped to a two-year high earlier this month to around 65,000 roubles ($828.55) per metric ton. Russian government has several times applied temporary gasoline exports bans for the past two years to fight off the fuel shortages and high prices. The current restrictions exclude supplies to the Moscow-led Eurasian Economic Union, a group of five former Soviet states, and to countries such as Mongolia with which Russia has intergovernmental agreements on fuel supplies. The biggest importers of Russian gasoline include Nigeria, Libya, Tunisia and the United Arab Emirates. ($1 = 78.4500 roubles)
Yahoo
23-06-2025
- Business
- Yahoo
DRC extends cobalt export ban amid persistent market oversupply
The Democratic Republic of Congo (DRC), the world's leading cobalt supplier, has announced a three-month extension to its export ban on the metal, which is a key component in electric vehicle batteries. The Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) confirmed the decision on Saturday, citing persistent market oversupply, according to a report by Reuters. The ban was initially imposed in February for a four-month period after cobalt prices dropped to a nine-year low of $10 per pound (lb). ARECOMS stated that the high level of stock still present in the market necessitated the extension of the temporary suspension. The agency has indicated that before the conclusion of the new three-month period in September, it will make a further announcement on whether to modify, extend, or terminate the suspension. Congolese authorities are currently evaluating the implementation of quotas for cobalt shipments among mining companies. According to the report, Glencore, the world's second-largest cobalt producer, supports the proposal for quotas. However, this stance contrasts with that of CMOC Group, the leading cobalt producer, which is advocating for the ban to be lifted. In related news, a coltan mine collapse in the town of Rubaya in DRC's North Kivu province has claimed the lives of at least 12 people, according to a separate Reuters report, citing sources. The report stated that several people managed to escape the artisanal mine when it collapsed on Thursday, although the cause has yet to be determined. Rubaya's small artisanal mines contribute approximately one-sixth of the global supply of coltan, an essential metallic ore for the manufacture of smartphones and other electronic devices. Since mid-2024, the M23 rebels have controlled the area, imposing a 15% tax on coltan production, as confirmed by rebel officials. "DRC extends cobalt export ban amid persistent market oversupply" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
23-06-2025
- Business
- Yahoo
DRC extends cobalt export ban amid persistent market oversupply
The Democratic Republic of Congo (DRC), the world's leading cobalt supplier, has announced a three-month extension to its export ban on the metal, which is a key component in electric vehicle batteries. The Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) confirmed the decision on Saturday, citing persistent market oversupply, according to a report by Reuters. The ban was initially imposed in February for a four-month period after cobalt prices dropped to a nine-year low of $10 per pound (lb). ARECOMS stated that the high level of stock still present in the market necessitated the extension of the temporary suspension. The agency has indicated that before the conclusion of the new three-month period in September, it will make a further announcement on whether to modify, extend, or terminate the suspension. Congolese authorities are currently evaluating the implementation of quotas for cobalt shipments among mining companies. According to the report, Glencore, the world's second-largest cobalt producer, supports the proposal for quotas. However, this stance contrasts with that of CMOC Group, the leading cobalt producer, which is advocating for the ban to be lifted. In related news, a coltan mine collapse in the town of Rubaya in DRC's North Kivu province has claimed the lives of at least 12 people, according to a separate Reuters report, citing sources. The report stated that several people managed to escape the artisanal mine when it collapsed on Thursday, although the cause has yet to be determined. Rubaya's small artisanal mines contribute approximately one-sixth of the global supply of coltan, an essential metallic ore for the manufacture of smartphones and other electronic devices. Since mid-2024, the M23 rebels have controlled the area, imposing a 15% tax on coltan production, as confirmed by rebel officials. "DRC extends cobalt export ban amid persistent market oversupply" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
