The U.S. Department of War suddenly announced it!
On October 17, they suddenly announced the cancellation of the bidding plan worth US $500 million to buy 7,500 tons of cobalt. This is a slap in the face. It was the first time since 1990 that I tried to stock up on cobalt, but it took a long time to fall yellow. The official reason is that "there are unresolved problems in the statement of work", which is the same as saying nothing!
The defense logistics agency originally targeted three suppliers: Canadian freshwater valley, Japanese metal mining company, and the company’s Norwegian factory, asking them to report a fixed supply price for the next five years.
It is possible to catch up with the global uranium market is uncomfortable, as accounting for 75% of the world's production of Congo (Gold), from February began to engage in export suspension, in June also extended the ban, this week only changed to the quota system, this year's remainder of the time only put 1.8 thousand tons of export quota, 2026 year after also more than 90 thousand tons annually.
This wave of operation directly pushed the price of uranium to the sky, the international benchmark price has doubled since February, and the domestic offer also increased from the beginning of the year at 16.9 thousand yuan / ton to September at 27.5 thousand yuan / ton, an increase of 62.7% in the amount.
Suppliers are obviously unwilling to lock in a fixed price. After all, Huatai Securities predicts that the cobalt price may exceed 350,000 yuan/ton in 2026, and no one wants to do business at a loss. This is probably the real background of the "instruction issue". What worries the United States even more is the "stuck neck" problem in the supply chain.
This thing is too crucial for use, fighter engine, missile high-temperature alloy can use it, new energy car batteries are more inseparable from it, but 70% of the world's refining production capacity is in Chinese hands.
U.S. stocks of uranium saved during the Cold War have long been sold because of the budget cuts in the 1990s, and now want to rebuild reserves, can not bypass the reality of resource concentration.
The Pentagon has also planned to store $1 billion in key minerals, including the $500 million in uranium, as a way to get rid of its reliance on competitors.
But the ideal is full, but the reality is skinny. As soon as the export control of the Democratic Republic of the Congo is tightened, the global supply will immediately become tight. It is simply unrealistic for the United States to stock up on goods as originally planned.
The chain reaction of the cancellation of the bidding quickly appeared. On October 18, U.S. rare earth and battery metal stocks collectively plunged, cutting off the gains of previous months.
That’s because the markets shake confidence in U.S. strategic reserve capabilities – not even an acquisition of 7,480 tons, let alone a so-called “autonomous supply chain.”
We must know that the proven reserves of the Democratic Republic of the Congo alone have 6 million tons, accounting for more than half of the world's total. This resource endowment cannot be replaced in the short term. China not only has processing advantages, but also has built a huge national reserve early. If the United States wants to catch up in this field, it is obviously not enough to rely on one bidding alone.
However, the United States does not seem to be planning to give up, and the announcement specifically mentioned "re-bidding after the problem is resolved." However, everyone with discerning eyes knows that as long as the global cobalt supply is concentrated in Congo (DRC) and processing is concentrated in China, the United States 'reserve plan will inevitably be controlled by others.
Congo (DRC) has made it clear that quotas are created to reduce global inventories to one-month demand and increase pricing power. There is a high probability that cobalt prices will rise in the future.
If the United States can't solve the pricing concerns of suppliers, even if the tender announcement is re-issued, I'm afraid it will still reach a deadlock. This "stop" is not so much a work mistake as a wake-up call to the resource strategy of the United States: in the global resource network, it is not as practical as straightening out the supply chain simply by spending money to hoard goods.
On October 17, they suddenly announced the cancellation of the bidding plan worth US $500 million to buy 7,500 tons of cobalt. This is a slap in the face. It was the first time since 1990 that I tried to stock up on cobalt, but it took a long time to fall yellow. The official reason is that "there are unresolved problems in the statement of work", which is the same as saying nothing!
The defense logistics agency originally targeted three suppliers: Canadian freshwater valley, Japanese metal mining company, and the company’s Norwegian factory, asking them to report a fixed supply price for the next five years.
It is possible to catch up with the global uranium market is uncomfortable, as accounting for 75% of the world's production of Congo (Gold), from February began to engage in export suspension, in June also extended the ban, this week only changed to the quota system, this year's remainder of the time only put 1.8 thousand tons of export quota, 2026 year after also more than 90 thousand tons annually.
This wave of operation directly pushed the price of uranium to the sky, the international benchmark price has doubled since February, and the domestic offer also increased from the beginning of the year at 16.9 thousand yuan / ton to September at 27.5 thousand yuan / ton, an increase of 62.7% in the amount.
Suppliers are obviously unwilling to lock in a fixed price. After all, Huatai Securities predicts that the cobalt price may exceed 350,000 yuan/ton in 2026, and no one wants to do business at a loss. This is probably the real background of the "instruction issue". What worries the United States even more is the "stuck neck" problem in the supply chain.
This thing is too crucial for use, fighter engine, missile high-temperature alloy can use it, new energy car batteries are more inseparable from it, but 70% of the world's refining production capacity is in Chinese hands.
U.S. stocks of uranium saved during the Cold War have long been sold because of the budget cuts in the 1990s, and now want to rebuild reserves, can not bypass the reality of resource concentration.
The Pentagon has also planned to store $1 billion in key minerals, including the $500 million in uranium, as a way to get rid of its reliance on competitors.
But the ideal is full, but the reality is skinny. As soon as the export control of the Democratic Republic of the Congo is tightened, the global supply will immediately become tight. It is simply unrealistic for the United States to stock up on goods as originally planned.
The chain reaction of the cancellation of the bidding quickly appeared. On October 18, U.S. rare earth and battery metal stocks collectively plunged, cutting off the gains of previous months.
That’s because the markets shake confidence in U.S. strategic reserve capabilities – not even an acquisition of 7,480 tons, let alone a so-called “autonomous supply chain.”
We must know that the proven reserves of the Democratic Republic of the Congo alone have 6 million tons, accounting for more than half of the world's total. This resource endowment cannot be replaced in the short term. China not only has processing advantages, but also has built a huge national reserve early. If the United States wants to catch up in this field, it is obviously not enough to rely on one bidding alone.
However, the United States does not seem to be planning to give up, and the announcement specifically mentioned "re-bidding after the problem is resolved." However, everyone with discerning eyes knows that as long as the global cobalt supply is concentrated in Congo (DRC) and processing is concentrated in China, the United States 'reserve plan will inevitably be controlled by others.
Congo (DRC) has made it clear that quotas are created to reduce global inventories to one-month demand and increase pricing power. There is a high probability that cobalt prices will rise in the future.
If the United States can't solve the pricing concerns of suppliers, even if the tender announcement is re-issued, I'm afraid it will still reach a deadlock. This "stop" is not so much a work mistake as a wake-up call to the resource strategy of the United States: in the global resource network, it is not as practical as straightening out the supply chain simply by spending money to hoard goods.