PRICING NOTICE: Proposal to launch reference prices for nickel sulfate market

Fastmarkets plans to launch two new prices on a CIF China, Japan and Korea basis - nickel sulfate, cif China, Japan and Korea, $ per tonne, and nickel sulfate premium, cif China, Japan and Korea, $ per tonne.

Fastmarkets Research estimates that the current demand for class 1 nickel units for use in electric vehicle (EV) batteries accounts for a minimal 3-4% market share, but this is forecast to increase rapidly over the coming years.
This will inevitably have a significant effect on the nickel market and current pricing mechanisms, and may lead to a separation in the pricing of material for the stainless steel and EV sectors.
Fastmarkets understands that, at present, nickel sulfate contracts are based on a formula where the premium component is applied to the London Metal Exchange’s cash-settlement nickel price. This premium component is inclusive of a raw material premium, processing fee and freight.
Fastmarkets proposes the launch of two monthly prices for nickel sulfate, one representing the premium component and the other an all-in price on a cif China, Japan and Korea basis.
The prices will complement our existing nickel sulfate price:
MB-NI-0244 Nickel sulfate, min 21%, max 22.5%; cobalt 10ppm max, exw China, yuan per tonne
Nickel sulfate, cif China, Japan and Korea, $ per tonne
Quality: Accepted by buyer for use in battery applications with chemical composition: Ni content, base 22.3% max, min 22%, cobalt 50ppm max
Quantity: 1 metric tonne
Location: cif main ports China, Japan, Korea (other ports normalized)
Timing: Within 60 days
Unit: US dollars per tonne
Publication: Monthly, first working day of each month, 4pm London time
Nickel sulfate premium, cif China, Japan and Korea, $ per tonne
Quality: Accepted by buyer for use in battery applications with chemical composition: Ni content, base 22.3% max, min 22%, cobalt 50ppm max
Quantity: 1 metric tonne
Location: cif China, Japan and Korea, on top of monthly average LME nickel cash price
Timing: Within 60 days
Unit: US dollars per tonne
Publication: Monthly, first working day of each month, 4pm London time
The consultation for this price launch begins Monday March 1, 2021, and will end on Wednesday March 31, 2021. The launch will take place, subject to market feedback, on Thursday April 1, 2021.
To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter to these prices, please email Juliet Walsh at pricing@fastmarkets.com. Please add the subject heading “FAO: Juliet Walsh, re Nickel Sulfate CIF CJK $ per tonne, Nickel Sulfate Premium CIF CJK $ per tonne.”
To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.

Juliet Walsh

juliet.walsh@fastmarkets.com

Published

Juliet Walsh

March 01, 2021

15:28 GMT

London