After Congo extended the ban, cobalt prices and inventories in China skyrocketed.

Gate News bot news, according to Bloomberg, the Democratic Republic of the Congo has extended its export ban until September, restricting the supply of raw materials used for alloys and batteries, leading to a surge in cobalt prices and inventories in China.

China supplies about 3/4 of the world’s cobalt. The country stated last weekend that the measures to suspend cobalt exports will continue “due to persistently high market inventories.” Previously, China had begun suspending cobalt exports on February 22 for a period of four months.

The price of cobalt at the Wuxi Stainless Steel Exchange has increased by approximately 10%. In Shenzhen, the stock price of Nanjing Hanrui Cobalt Industry Co., Ltd. rose by 14%, while the stock price of Ganzhou Tengyuan Cobalt Industry New Materials Co., Ltd. increased by 20%. Zhejiang Huayou Cobalt Co., Ltd. rose by 7.6% in Shanghai.

Thomas Matthews, a battery materials analyst at CRU Group, stated: “We may see a surge in prices initially, but the real pressure will emerge later this year as intermediate inventories begin to deplete. In short, everyone should fasten their seatbelts.”