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

Mon, 16th Mar 2026 13:29

* Glencore taps Wuxi exchange to meet cobalt demand

* Congo's cobalt ⁠export restrictions create shortages

* Glencore plans to export 22,800 tons of cobalt this year from Congo

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.

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.

Cobalt stocks on Wuxi <LNZ-ELCOINVWX> 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.

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.

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.

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.

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)