03 Jul 2024 | 13:42 UTC

Platts updates proposal to reshape European cobalt coverage, publish separate assessments for chemical and alloy grades

Platts, part of S&P Global Commodity Insights, is updating its proposal to reshape its European cobalt coverage, through two separate assessments for chemical grade metal and one alloy grade metal assessment, effective Sept. 2.

Under the updated proposal, Platts proposes to revise the specifications for its existing daily European 99.8% cobalt metal assessment (MMAIK00) to reflect certain chemical grade metal brands. Platts also proposes to launch a new daily assessment to reflect other specified chemical grade metal brands, as well as launching a new alloy grade metal assessment.

The proposed assessments would each be published as a single close value, representing the most competitive brands on the day, with no associated high and low price points databased. Existing high and low bates for MMAIK00 would be discontinued effective Sept. 2.

The revised proposal follows market feedback that three separate assessments would better reflect the pricing dynamics for the different grades and end uses of various cobalt metal brands, also distinguishing between chemical and alloying end-use applications.

Chemical grade cobalt end-use applications include battery chemicals, catalysts, pigments, ceramics, and paints. Alloy grade end-use applications include superalloys, hard and diamond tools, special steels and alloys and magnets.

Platts first published its initial proposal to launch chemical and alloy grade assessments on May 13 in a subscriber note available here.

Platts had initially proposed to discontinue the MMAIK00 assessment and replace it with a new chemical grade assessment. After initial feedback and review, Platts proposes to maintain and rename the existing assessment to European chemical grade basket B cobalt metal 99.8% to retain price history, with specifications revised to align to a proposed chemical grade assessment.

The proposed assessment specifications are as follows:

Current European cobalt assessment Revised chemical grade assessment New chemical grade assessment New alloy grade assessment
Assessment description Cobalt 99.8% European European Cobalt Metal 99.8% chemical grade basket B European Cobalt Metal 99.8% chemical grade basket A European Cobalt Metal 99.8% alloy grade
Symbol MMAIK00 MMAIK00
Bates High, Low and Close Close Close Close
Frequency Daily Daily Daily Daily
Quality Min 99.8% Co Min 99.8% Co Min 99.8% Co Min 99.8% Co
Quantity Max 100 mt Typically 1-20 mt, Max 100 mt Typically 1-20 mt, Max 100 mt Typically 1-20 mt, Max 100 mt
Dimensions Cut cathodes, broken cathodes & briquettes Broken cathodes, briquettes, rounds Briquettes, broken cathodes, cut cathodes Rounds, cut cathodes
Incoterms and location IW Europe IW Rotterdam IW Rotterdam IW Rotterdam
Timing Shipment within 30 days Shipment within 30 days Shipment within 30 days Shipment within 30 days
Payment Net 30 days Cash against documents Cash against documents Cash against documents
UoM $/lb $/lb $/lb $/lb

For the chemical grade basket A assessment, Platts proposes to consider the following cobalt metal brands based on their predominant end-use application and market pricing dynamics in the Rotterdam and European market:

  • Jiangsu KLK broken cathodes
  • Huayou cut cathodes
  • Hanrui cut cathodes
  • Sherritt briquettes
  • Nornickel Norilsk cut cathodes (grade 1 and 2)

For the chemical grade basket B assessment, Platts proposes to consider the following cobalt metal brands:

  • CTT broken cathodes
  • Ambatovy briquettes
  • Vale Long Harbor cobalt rounds 99.9%
  • Murrin Murrin briquettes
  • Boleo rounds

For the alloy grade assessment, Platts proposes to consider the following brands:

  • Vale Port Colborne cobalt rounds 99.9%
  • Sumitomo Metal Mining (SMM) cut cathodes 99.8%
  • Nikkelverk cut cathodes 99.95%
  • Jinchuan cut cathodes 99.9%

Other brands may be considered for the assessments and may be subject to normalization.

The proposed and revised assessments would be published on Platts Nonferrous Metals Alert pages, Platts Metals Daily, Platts Connect, Platts Market Center and in the Platts price database under the symbols listed above. The assessments will also be included on pages PMA375 and MTL375.

Platts invites feedback on this revised proposal to battery_metals@spglobal.com and pricegroup@spglobal.com by Wednesday July 24.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.