Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) declared force majeure Wednesday on its shipments of cobalt hydroxide, as heavy flooding in Durban halted exports from the South African port, Dow Jones reports.
Glencore (OTCPK:GLNCY), the world’s largest producer of cobalt hydroxide – a chemical that is processed to be used in batteries and other metallurgical goods – reportedly suspended its cobalt operations on Tuesday.
The company produced 31.3K tons of cobalt in 2021, and was forecasting output of ~48K tons in 2022.
Downstream demand of cobalt has been under pressure in recent weeks, as China’s lockdowns nicks consumption of goods like electric vehicles, although prices over the last month have been fairly flat at ~$33.60/lb, according to price reporting agency Fastmarkets.
Separately, a new report from the Australasian Centre for Corporate Responsibility alleges Glencore (OTCPK:GLNCY) is understating methane emissions from some of its Australian coal mines.