Proposal to launch low-carbon nickel briquette premium cif global

The industry demand for pricing mechanisms to reflect low-carbon nickel have grown significantly in recent months with participants seeking greater visibility into the potential value of low-carbon products over standard nickel products.

This trend is particularly acute in the Class 1 nickel market.

With regards to market size and definition of low-carbon, Fastmarkets will leverage its experience in pricing low-carbon differentials in other markets such as aluminium and steel to develop this low-carbon nickel briquette price and utilize its expertise interacting with data beyond concluded liquidity to determine the potential value of a low-carbon differential for nickel briquettes.

Fastmarkets will look to engage with data concluded on both a spot and annual contract basis to maximize capturable liquidity for the price differential.

Nickel briquette has been selected as the product basis for the low-carbon differential due to its broad consumption base, being used in both stainless steel and battery sectors.

Fastmarkets consulted with the industry to determine the appropriate carbon emission threshold for nickel to be considered green. The process was also validated by mining sector emissions benchmarking specialists Skarn Associates.

The proposed specifications are as follows:

Low-carbon nickel briquette premium, cif global, $/tonne
Quality: Briquette. 99.80% min primary nickel: ASTM B39-79 (2013) or GB/T 6516- 2010 – Ni9990 grade
Carbon Limit: 18tCO2e per tonne of nickel briquette produced, Scope 1 and 2 emissions, measured following ISO14040 standards
Quantity: Min 20 tonnes
Location: cif global premium, on top of exchange or trade platform listed nickel price
Timing: Up to 12 months
Unit: USD/tonne
Publication: Monthly, first working day of the month, 4pm London time
Notes: Price will follow the UK pricing calendar and will be assessed from London

This price will be a part of the Fastmarkets base metals package.

The consultation period for this proposed launch starts from Monday March 25, and will last for one month, ending on Wednesday April 24.

The launch will take place, subject to market feedback, on Wednesday May 1.

To provide feedback on this proposal or if you would like to provide price information by becoming a data submitter to this price, please contact Callum Perry by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Callum Perry, re: low-carbon briquette premium.” 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 https://www.fastmarkets.com/methodology.