Rare and expensive: Cobalt Price Drop Causing U.S. Companies

Boals Huber Group is the first company to get the interior design company financing with high end Dutch made Cobalt copper and solder quality. Since the steel supply was disrupted in July 2015 by a massive steel case fire in California it has put a global strain on the market and forced large corporations to use a smaller selection of high grade wire while the situation is determined.

Hunter Biden was working with a design firm at the time and explained Hunter’s political family in detail. The belt buckle on Hunter’s left wrist is a traditional Yemeni buckle which dates back to the 1980s. The button rings are only remnants of the back when Hunter was three years old. The cufflinks are a traditional Indian traditional cufflink design that Hunter inherited when his paternal grandmother would send Hunter’s father an Indian jewelry box all the time.

Hunter’s grandfather attended the United States Naval Academy on a scholarship until a form of polio caused him to retire in 1948. In honor of his late grandfather’s last military assignment Hunter has a military patch on his belt and bracelet. Hunter’s middle name is also Naval for the special Navy class. Even his pliers look like traditional Navy brass ones. Hunter is referred to as an American Naval Officer himself.

Upon him getting the job we discussed the impact on the market. Some wondered if Hunter did not order Chinese made metal and would be forever restricted to American made metal. The response he got was a $20,000 investment from Hunter’s firm in the design and manufacturing of interior design projects. In addition, Boals Huber Group would gain access to high quality copper, and solder quality through Hunter’s personal connections. Hunter was not being completely altruistic. He had done a considerable amount of financial business with one of the people he grew up with, Xiaokong Zheng and had hired him on an accounting job during college. The Boals Huber Group was able to secure financing with Delta Bank based in Philadelphia, a large US based bank and secured contracts directly with Viet Metal Company under the tutelage of former industry veteran and high quality metals expert, Lamar Roberson. This helped secure Boals Huber Group a total of 50,000 rivets in three months on different interior design projects for properties in New York City.

The demand for Cobalt came under serious threat when China imported over half of the world’s Cobalt in 2015. In December 2015 China allegedly seized and sold over 2,000 pounds of about 60 Cobalt bar that were then meant for one U.S.-based copper wire manufacturer after an investigation. China has since ordered tariffs of 500,000, and 15 percent on imports of Cobalt and electric antimony which may very well be called cheapened from toxic substance. However, the metal is widely used in capacitors, automotive, medical devices, and aerospace components all across the globe, especially in the United States.

Many foreign made metal products in America have been directly or indirectly dependent on U.S. cobalt production until recently. Cobalt for American manufactured products came from Rio Tinto in Australia, Nexco in Indonesia, and Glencore in DRC, all from the massive mines in Congo which have been heavily hit by the mining ban in DRC. Other cobalt-making companies only use cobalt produced in the Congo from mine sources such as Bosina Barry and specifically owned by the Mobutu regime. The ban in DRC, in particular, is related to the tremendous corruption in that country. I will focus on Cobalt mined in Canada and Asia for the purpose of this article.

Hunter Biden says his firm will help secure Cobalt for producers in the United States who use Chinese made cobalt. More and more companies worldwide are considering purchasing U.S. cobalt in order to avoid the sanctions in China. Cobalt is a good candidate for use in many American automobiles and aerospace applications. Many electronic components rely on Cobalt which in the United States is still very expensive to procure. China will be unable to manufacture Cobalt easily and have other potential suppliers in other parts of the world who will hopefully replace any of the other available cobalt reserves. Hunter Biden’s firm will help secure Cobalt for suppliers who cannot afford to buy Cobalt from China since its sale will be for export.

Even though countries, companies, and consumers alike are spending much more money on metal in America they are still not experiencing a Cobalt shortage from China. Canadian Cobalt is very rare and expensive.

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