Cobalt Market Dynamics: Navigating Tariff Challenges and Opportunities

U.S. companies are purchasing cobalt from Indonesia's Lygend Resources to avoid high tariffs on Chinese and Canadian imports. This strategic move allows cheaper sourcing amid heightened trade tensions. Though Lygend's cobalt sales have increased, oversupply issues and market fluctuations continue to affect global prices.

U.S. firms are strategically sourcing cobalt from Indonesia to circumvent tariffs levied on Chinese imports, sources have revealed. The cobalt, produced by China's Lygend Resources in Indonesia, offers American buyers a more cost-effective option as they face augmented duties on Chinese and Canadian supplies.

Industry insiders confirm that President Trump's tariffs on Chinese goods have significantly impacted trade dynamics, with Lygend's Indonesian cobalt emerging as a favored alternative. Lygend began exporting cobalt to the U.S. last year, exploiting Indonesia's tariff-free status, which has made its cobalt appealing to U.S. consumers.

Despite challenges of global oversupply and fluctuating prices, demand for Indonesian cobalt remains strong. Additionally, Congo's temporary suspension of cobalt exports has offered some respite to the market, though experts believe the supply-demand imbalance will persist.

(With inputs from agencies.)