Decision to add moisture content limits across several Fastmarkets black mass payables indicators

An open methodology review was launched on September 19 focusing on moisture content. The consultation period ended on October 20.

Changes to scrap origin for reasons such as rising end of life materials mean that greater volumes of black mass are being seen with higher moisture content from origins such as the US and Europe and often being sold at discounted payables to low-moisture materials, according to market sources.

This is because major consumers in markets such as South Korea prefer to purchase low-moisture materials to optimize their refining process and to avoid paying for large volumes of water to be shipped in containers, sources said.

Regional differences
Fastmarkets’ payables indicator assessments for the CIF South Korea and CIF Southeast Asian markets have, since launch in 2023, only accepted data points for dry, low-moisture black mass.

But Fastmarkets has become aware of producers or traders using these payables to sell their high-moisture materials. Thus, following the results of the consultation, Fastmarkets will specify the maximum 5% moisture limit in the methodology and names of these prices.

In the European ex-works market, most of the EU-based black mass producers polled by Fastmarkets over the past month said they are producing material with moisture content at 5% or less.

Most of the inputs to the exw Europe black mass payables indicators have already been for materials with 5% moisture or lower.

In the United States ex-works market, there was a larger volume of higher moisture-content material found being traded on the spot.

But market participant feedback indicated that Fastmarkets should apply the same moisture limit on the US prices in to be consistent with other major markets and avoid wide price ranges.

Therefore, following the results of the consultation, Fastmarkets will also specify the maximum 5% moisture limit in both the methodology and names of these prices.

New price names
Following the consultation period, the new price names are as follows, with amendments in italics. All of the below prices will have their methodology specifications amended with the addition of “maximum 5% moisture content” added into the “notes” field.

MB-BMS-0001 Black mass, NCM/NCA, payable indicator, nickel, max 5% moisture, cif South Korea, % payable LME Nickel cash official price
MB-BMS-0002 Black mass, NCM/NCA, payable indicator, cobalt, max 5% moisture, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end)
MB-BMS-0003 Black mass, NCM/NCA, payable indicator, lithium, max 5% moisture, cif South Korea, % payable Fastmarkets’ lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea
MB-BMS-0004 Black mass, NCM/NCA, payable indicator, nickel, domestic, max 5% moisture, exw Europe, % payable LME Nickel cash official price
MB-BMS-0005 Black mass, NCM/NCA, payable indicator, cobalt, domestic, max 5% moisture, exw Europe, % payable Fastmarkets’ standard-grade cobalt price (low-end)
MB-BMS-0006 Black mass, LCO, payable indicator, cobalt, domestic, max 5% moisture, exw Europe, % payable Fastmarkets’ standard-grade cobalt price (low-end)
MB-BMS-0007 Black mass, NCM/NCA, payable indicator, nickel, max 5% moisture, cif Southeast Asia, % payable LME Nickel cash official price
MB-BMS-0008 Black mass, NCM/NCA, payable indicator, cobalt, max 5% moisture, cif Southeast Asia, % payable Fastmarkets’ standard-grade cobalt price (low-end)
MB-BMS-0009 Black mass, NCM/NCA, payable indicator, lithium, max 5% moisture, cif Southeast Asia, % payable Fastmarkets’ lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea
MB-BMS-0010 Black mass, LCO, payable indicator, cobalt, max 5% moisture, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end)
MB-BMS-0011 Black mass, LCO, payable indicator, lithium, max 5% moisture, cif South Korea, % payable Fastmarkets’ lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea
MB-BMS-0014 Black mass, NCM/NCA, payable indicator, cobalt, max 5% moisture, exw USA, % payable Fastmarkets’ standard-grade cobalt price (low-end)
MB-BMS-0015 Black mass, NCM/NCA, payable indicator, nickel, max 5% moisture, exw USA, % payable LME Nickel cash official price

These prices are part of the Fastmarkets Base Metals, Minor Metals and Industrial Minerals packages.

Changes to the price names and methodology will be made by the end of US working hours on Friday October 24.

To provide feedback on the change to moisture contents listed in our methodologies as described in this notice, please contact pricing@fastmarkets.com and industrialminerals@fastmarkets.com. Please add the subject heading “re: Black mass moisture content.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets’ pricing methodology and specification documents, go to the Fastmarkets methodology page.