Lithium prices continue to modestly recover in China aided by increased downstream demand, while there has also been a recent increase in the payables for key intermediary materials such as nickel mixed hydroxide precipitate (MHP) and cobalt hydroxide.
This environment led to a rise in black mass payables heard this week in key markets such as China, South Korea and North America. Near-term increases were widely predicted by market participants last week, reported by Fastmarkets.
“For the Asian market, the price of lithium has slightly rebounded upward and the demand for black mass has also increased a little bit, affecting the price of black mass,” according to a South Korean recycler source.
A second Korean recycler source similarly noted that black mass prices are expected to rise in line with the higher lithium prices.
“A few companies in South Korea which buy black mass and are able to extract metal sulfate are ramping up their operations now,” according to a Chinese battery materials producer source.
“Both cobalt and nickel refining feed spot prices are getting stronger in China, under expectations of better [battery raw material] business in the second half of 2023,” a second Chinese battery materials producer source said. To illustrate his point, he noted that mixed hydroxide precipitate (MHP) tolling fees have recently reduced, which is reducing the discounts applied to nickel and cobalt metal salts in the country.
Fastmarkets’ assessments of the black mass, NCM/NCA, payable indicator, cobalt, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end) and the black mass, NCM/NCA, payable indicator, nickel, cif South Korea, % payable LME Nickel cash official price were both 65-72% on Wednesday, up week on week by 4 percentage points from 61-68%.
Bids for nickel, cobalt, manganese (NCM) black mass with around 3-4% lithium remained around 60-65% CIF South Korea for cobalt and nickel this week, with the value of lithium included, according to a Korean trading source, but he said that workable prices after negotiation would now be around 65-70% CIF South Korea after the recent increases in black mass offers and key battery raw materials markets.
Other market sources said that payables would need to be higher to conclude deals, with one Europe-trading source pointing out that offer prices into Southeast Asia for NCM black mass with 3-4% lithium content are now prevailing at around 75%. Deals were being limited further by some sellers holding back material and waiting for higher payables, he added.
An offer for United States-origin NCM black mass was heard at 70% delivered basis for nickel and cobalt this week, according to a buyer in the region.
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