Asian black mass payables hold firm despite limited trading in holiday week

Battery raw materials prices have generally continued to trend downward over the past week, with cobalt metal a notable exception. The largely soft price environment for intermediary products such as lithium carbonate and nickel sulfate was leading to lower bids from black mass buyers in Asia, sources said.

“September lithium prices are around $26 per kg [CIF Korea] – and this price decreased by almost $15 per kg since July. But black mass payables fell only 10-20%,” a Korean buyer source said.

Fastmarkets’ price assessment for lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was $23-26 per kg on October 6, unchanged day on day.

The buyer source said they would try to bid 50-60% CIF South Korea for nickel and cobalt including the value of lithium in nickel cobalt manganese (NCM) black mass, but was unsure about the chances of success.

Relatively high black mass prices have led some recyclers to opt for purchases of primary materials in the Chinese market.

Offers for NCM black mass containing metal in the ranges of 15-25% nickel, 5-15% cobalt and 3-5% lithium were last heard at around 74-77% CIF South Korea and Southeast Asia for nickel and cobalt including the value of lithium.

A second South Korean buyer said they was taking a “pause” from buying, finding that “the more we refine black mass, the more we lose money,” and would bid no higher than 60% CIF for nickel and cobalt including the value of lithium for NCM black mass.

A third South Korean buyer assessed a workable market price at 65% CIF Korea for nickel and cobalt payables, with 4-5% for lithium.

Deals were still possible just above 70% CIF for nickel and cobalt including the value of lithium, according to a major Korean trader source. While a European trading source said they received interest at 67-73% CIF Korea for nickel and cobalt including the value of lithium on NCM black mass.

Fastmarkets’ price assessments for black mass, NCM/NCA payable indicator, nickel, cif South Korea, % payable LME nickel cash official price and for black mass, NCM/NCA, payable indicator, cobalt, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end) were both 65-70% on Wednesday October 4, unchanged week on week.

Fastmarkets’ assessment for black mass, NCM/NCA, payable indicator, lithium, cif South Korea, % payable Fastmarkets’ lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was 4-5% on Wednesday, unchanged week on week.

Southeast Asia market

In Southeast Asia, holidays and low demand have also restricted buying activities.

“We don’t know what will happen after China opens up next week, so this week we prefer to slow down and don’t want to buy. We think the lithium market may drop again after China is back,” a Southeast Asia consumer source said on Tuesday October 3.

The source said workable prices would be around 72-73% CIF Southeast Asia for nickel and cobalt including lithium in NCM black mass, which works out to around 69-70% CIF for nickel and cobalt given a lithium payable of 4-5%.

In one negotiation, a bid was lodged at 70% CIF Southeast Asia for nickel in EU-origin NCM black mass, while payables were also heard bid at 15-20% for copper and aluminium payables, which is not a pricing mechanism typically heard of in the market.

In another negotiation, bids of 70% CIF Southeast Asia and 65% CIF for nickel payables in NCM black mass were heard done by a trading firm.

Fastmarkets has been hearing of fewer offers and bids for black mass including the value of lithium in recent weeks amid the price drops in the material, with some companies preferring to focus on nickel and cobalt payables.

“Sellers are looking for outlets on black mass now. China is not buying so there is nowhere to go currently,” a major European trader source said on Wednesday.

Fastmarkets’ price assessments for black mass, NCM/NCA payable indicator, nickel, cif Southeast Asia, % payable LME nickel cash official price and for black mass, NCM/NCA, payable indicator, cobalt, cif Southeast Asia, % payable Fastmarkets’ standard-grade cobalt price (low-end) were both 65-70% on October 4, widening down 1% week on week from 66-70% the week before.

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