Proposal to launch mixed-hydroxide-precipitate (MHP) cif CJK price

Fastmarkets is proposing to launch a mixed-hydroxide-precipitate, cif China, Japan and South Korea price assessment to track the market dynamics of this emerging nickel sulfate feedstock.

Following a successful initial consultation on a proposed price launch, Fastmarkets will be progressing with this initiative and invites feedback on the specifications of a price.

Mixed hydroxide precipitate (MHP) is an intermediate nickel product produced from laterite nickel ore, which contains both nickel and a small percentage of cobalt. MHP is typically produced using a high-pressure acid leaching (HPAL) process.

The initiative reflects growing attention and focus on the MHP market as one of the primary routes to nickel sulfate for the battery industry globally. Market participants from across the value chain have noted that MHP production and trade will increase amid the growing demand for nickel-rich batteries, particularly from the electric vehicle market.

With production set to rapidly increase, this price assessment will look to provide clarity in this opaque market.

The price assessment will also be highly complementary to Fastmarkets’ existing nickel coverage, particularly of nickel sulfate domestically in China and internationally.

The proposed price assessments will provide the same information, expressed in two ways - one will be a payable indicator, basis a percentage of the LME nickel cash monthly average; the other will be a calculated price, basis that payable indicator to give participants increased clarity into the assessed market value of MHP compared with other nickel feedstocks.

The proposed price specifications are as follows:

Mixed hydroxide precipitate payable indicator, % London Metal Exchange, cif China, Japan and South Korea
Quality: 30-40% nickel min, 1-6% cobalt min, 4% Zn max, 4% Cu max, 9% Mn max, 5% Mg max, 5% S max, 0.5% Fe max, moisture content 35-40%
Quantity: min 100 tonnes
Location: cif major ports China, Japan and South Korea (other ports normalized)
Timing: 45 days
Unit: % payable basis LME monthly average
Publication: Weekly, Friday 3-4pm London time

Mixed hydroxide precipitate expressed price basis payable, cif China, Japan and South Korea, $/tonne
Quality: 30-40% nickel min, 1-6% cobalt min, 4% Zn max, 4% Cu max, 9% Mn max, 5% Mg max, 5% S max, 0.5% Fe max, moisture content 35-40%
Quantity: min 100 tonnes
Location: cif major ports China, Japan and South Korea (other ports normalized)
Timing: 45 days
Unit: US dollar per tonne, inferred basis the payable range expressed in payable indicator
Publication: Weekly, Friday 3-4pm London time

The consultation period for the proposed price launch will start on Monday September 19 and will end one month later, on Monday, October 17. The proposed launch will take place, subject to market feedback, on Friday, October 28.

To provide feedback on this open consultation, please contact Callum Perry by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Callum Perry, re MHP proposed price.”

To see all Fastmarkets pricing methodology and specification documents go to https://www.fastmarkets.com/about-us/methodology.

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