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Nickel and cobalt prices fluctuated through the month, but Fastmarkets’ assessments of battery-grade lithium carbonate spot prices fell for most of August due to poor consumer demand and a severe oversupply of material, sources said.
The sharp downtrend in lithium prices observed during the month also led to a decline in the value of lithium paid in black mass, Fastmarkets understands.
Fastmarkets’ weekly assessment for lithium payables in black mass dropped twice during August due to bearish lithium sentiment and reduced interest in paying for lithium in black mass across major markets, sources said.
In August, the assessment of the 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 averaged 3.38%, down from the average of 4.00% in July.
For payables of nickel and cobalt, most consumer bids for nickel-cobalt-manganese (NCM) black mass of low impurity were heard at payables of 70-73% CIF South Korea, including the value of lithium, at the start of August, with limited volumes of transactions for similar materials reportedly done at 73-76% CIF South Korea.
But by the end of August, bids from most South Korean consumers dropped to payables of no higher than 70% CIF for nickel and cobalt, lithium value included, which would work out to 69% CIF without the value of lithium.
Despite sluggish demand, offers from the US market to Asia for NCM black mass fitting Fastmarkets’ specifications were mostly heard at payables of 75-80% CIF for nickel and cobalt, including the value of lithium.
Fastmarkets’ daily price assessment for black mass, NCM/NCA, inferred, cif South Korea averaged $4,049.88 per tonne in August, down from the average of $4,252.63 per tonne in July.
The inferred price uses the midpoint of Fastmarkets’ assessment for black mass payables, the midpoint of metal contents in the black mass covered in the specification, and underlying metal prices.
Fastmarkets’ assessments for South Korean black mass payables calculate lithium separately from nickel and cobalt payables, in line with demand from the market.
In August, the assessments of the black mass, NCM/NCA, payable indicator, nickel, cif South Korea, % payable LME nickel cash official price and of the black mass, NCM/NCA, payable indicator, cobalt, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end) both averaged 71%, down from the average of 71.70% in July.
Lower demand in Asia is causing issues for European sellers, with a producer source in the region telling Fastmarkets that some processors are running at low levels of operating capacity utilization.
Product-status NCM black mass from Europe for export to Asia was heard offered at 65-66% ex-works Europe for payables of nickel and cobalt, including the value of lithium, in August.
In the case of hazardous waste material for domestic consumption, offers were heard at payables of nickel and cobalt in the range of 55-65% ex-works Europe.
But consumers in Europe speaking with Fastmarkets over recent weeks said they are targeting payables of only 50-55% ex-works for nickel and cobalt in NCM black mass, with some deals for hazardous-waste-classified NCM black mass heard in the European market at 55-58% ex-works Europe by the end of August.
In August, the assessments of the black mass, NCM/NCA, payable indicator, nickel, domestic, exw Europe, % payable LME Nickel cash official price and of the black mass, NCM/NCA, payable indicator, cobalt, domestic, exw Europe, % payable Fastmarkets’ standard-grade cobalt price (low-end) both averaged 55.50%, down from the average of 57.50% in July.
Fastmarkets’ daily price assessment for black mass, NCM/NCA, inferred, exw Europe averaged $3,106.69 per tonne in August, down from the average of $3,333.60 per tonne in July.