(Ecofin Agency) - CMOC and Glencore, the world's top cobalt producers, are maintaining their output despite a 60% price drop from the last peak. The Democratic Republic of Congo (DRC), where the firms operate, is exploring ways to secure a "fair price" for the metal.

Cobalt prices on the London Metal Exchange have fallen 20% in the past year, trading at $27,830 per ton on April 29th. However, the Ecofin Agency found that this has not prompted production cuts by the industry leaders for 2024.

? We've released our Q1 2024 Production report.

Q1 production highlights:
➡️ Copper, zinc and coal production broadly in line with the prior year comparable period
⬆️ +14% own sourced nickel production

Watch and click through to the report below.#GlencoreProduction

— Glencore (@Glencore) April 30, 2024

Glencore reported a 40% year-on-year decline in its DRC cobalt output to 5,900 tonnes in Q1 2024. While scaling back production at its Mutanda mine, the company plans to keep its 2024 targets close to 2023 levels of 35,000-40,000 tonnes.

Similarly, China's CMOC, now the world's top cobalt producer, made no mention of reducing output. Its DRC mines delivered 25,200 tonnes in Q1 2024, a 392% jump from a year earlier. CMOC's 2023 cobalt production surged 174% to 55,526 tonnes.

The rising output from CMOC and steady production by Glencore are expected to strengthen the cobalt market surplus. The Cobalt Institute reported last February a 12,500-tonne surplus in 2023, “the larges surplust in recent years”.

Analysts at Goldman Sachs predict the surplus will keep weighing on prices, with a projected 12% decline in 2024. In response, Bloomberg informed, the DRC, the world's top cobalt producer, is considering export restrictions or other measures to secure a fair price.

Emiliano Tossou