Glencore turns to China exchange stocks to meet cobalt commitments, sources say

Glencore Sources Cobalt from China’s Wuxi Exchange to Meet Supply Commitments

Glencore’s Cobalt Sourcing Strategies Amid Supply Constraints

By Pratima Desai

Background on Glencore’s Cobalt Supply

LONDON, March 16 (Reuters) - Commodity trader Glencore has pulled sizeable cobalt stocks from China's Wuxi exchange to honour commitments to electric-vehicle battery makers in the country, due to limited supply of the material, two sources familiar with the matter said.

London-listed Glencore supplies its Chinese clients with cobalt mined in the Democratic Republic of Congo. The central African country accounts for 72% of global supplies estimated at nearly 268,000 metric tons last year, according to Darton Commodities.

Export Restrictions and Supply Chain Impact

Congo's government suspended exports in February last year to support cobalt prices which had dropped to nine-year lows. The suspension remained in place until Congo introduced export quotas last October.

Glencore was able to take cobalt it had stockpiled in Malaysia to China last year, one of the sources said, but the Swiss-based firm doesn't have enough to meet its contractual obligations in the country.

Wuxi Exchange Stock Movements

Cobalt stocks on Wuxi have more than halved since late January to around 3,934 tons. Glencore took most of the cobalt from Wuxi, the sources said.

Glencore declined to comment.

Production and Export Plans

Glencore produced 33,500 tons of cobalt in Congo last year and it plans to export 22,800 tons this year from the country under the quota system applicable at least until end-2027, according to its 2025 production report. 

"Cobalt produced (in Congo) in excess of the allocated quotas continues to be stored in-country and will be sold as circumstances allow," the report said.

Market Impact and Pricing Trends

Cobalt metal prices have increased 160% since February 2025 to $26/lb or $57,320 a ton due to shortages created by Congo's move to restrict exports.

Cobalt as a Byproduct and Pricing Mechanisms

Congo's cobalt is a byproduct of copper production and comes in the form of hydroxide used to make cobalt sulphate for lithium-ion batteries.

Cobalt hydroxide is priced as a percentage of the cobalt metal price - known as payables.

Record High Payables

Traders say payables are now regularly quoted at record highs of 100%. Cobalt hydroxide payables were at 55% in January 2025.

(Reporting by Pratima Desai; editing by Andrei Khalip)