DRC Extends Cobalt Export Ban Amid Market Oversupply

The Democratic Republic of Congo (DRC) has extended its cobalt export ban by three months due to persistent market oversupply. The ban was initially imposed in February after cobalt prices dropped to a nine-year low. ARECOMS cited high stock levels in the market for the extension, with further announcements on the ban to be made in September. Glencore supports proposed quotas for cobalt shipments, while CMOC Group advocates for the ban to be lifted. A coltan mine collapse in DRC's North Kivu province has claimed at least 12 lives, with small artisanal mines contributing to the global supply of coltan.

The Democratic Republic of Congo (DRC) has extended its cobalt export ban by three months, aiming to address persistent market oversupply. The ban, initially imposed in February, was set to expire but has been extended by ARECOMS, the regulatory body, due to high stock levels in the market [2]. This move is expected to have significant implications for the global cobalt market.

The extension of the export ban will cut global supply by over 100,000 metric tons of cobalt in metal, according to analysts at Guosen Metal. This is likely to cause a supply shortage in the domestic market and potentially drive up prices [1]. The most-active cobalt futures contract (WUXCOBMc1) on China's Wuxi Stainless Steel Exchange rallied more than 9% to its highest since March 14, reaching 254 yuan ($35.34) per kilogram [1].

The decision to extend the ban comes amidst a backdrop of historically low cobalt prices, which have been hurt by weak demand from automakers and increased copper production, from which cobalt is extracted as a by-product [1]. The DRC, the world's leading cobalt supplier, is seeking to stabilize the market and support price recovery through this measure.

While Glencore, the world's second-largest cobalt producer, supports the proposal to implement export quotas, the top producer, China's CMOC Group, has been advocating for the lifting of the ban [2]. CMOC Group, however, stated that the extension is not expected to exert significant impact on its operating results, as operations at its Tenke Fungurume Mining and Kisanfu Mining sites are normal for now [1].

The extension of the export ban is not the only challenge facing the cobalt market. A coltan mine collapse in DRC's North Kivu province has claimed at least 12 lives, highlighting the ongoing safety and regulatory issues in the region's mining sector. Small artisanal mines in the DRC contribute to the global supply of coltan, which is used in various electronic devices, including smartphones and laptops [2].

In conclusion, the extension of the cobalt export ban by the DRC is a significant development that will likely impact global supply and prices. The market's reaction to this news has been immediate, with cobalt futures surging to their highest levels in over three months. Investors and financial professionals should closely monitor the situation, as further announcements from the Congolese authorities regarding the future of cobalt exports and potential quota distributions are expected before the new deadline in September.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SQ042:0-china-cobalt-futures-hit-more-than-3-month-high-after-congo-extends-export-ban/
[2] https://www.indexbox.io/blog/congo-extends-cobalt-export-ban-to-combat-oversupply/