BHP Billiton pulls out of cobalt spot market

LONDON, Sept 3, 2009 (Reuters) - Miner BHP Billiton (BHP.AX)(BLT.L) said on Wednesday that it had pulled out of the spotmarket for minor metal cobalt. The company has put alternative arrangements in place for
the sale of its cobalt production to achieve better returns and
in response to changing market conditions, it said. "The company doesn't anticipate being in a position to offer
cobalt metal on the spot market for the foreseeable future," a
company statement said. A spokesman for the world's biggest miner declined to give
further details and was unable to offer cobalt production
numbers. A by-product of nickel and mainly to make aero engines and
batteries for hybrid cars, high grade cobalt COB-CATH-LON
currently stands at about $18.50/$20.00 a lb. Production cutbacks and rising demand have buoyed cobalt
prices in recent weeks, with a deficit seen next year.
"The price remains firm," said one cobalt trader. "On the
other hand, there is not a huge amount of demand, so this news
may strengthen prices but it will not send it through the roof."
(Reporting by Michael Taylor; editing by Anthony Barker)