Proposal to amend nickel low-carbon briquette premium, cif global price assessment

Following the conclusion of the recent consultation and subsequent launch of the low-carbon nickel briquette premium, Fastmarkets invites further engagement on feedback suggesting the potential inclusion of additional metrics for measuring sustainability and including other shapes of nickel.

As this is a rapidly developing market, Fastmarkets understands the importance of continued review of its pricing specifications to ensure that the price accurately reflects the needs of the market, and its open and competitiveness.

The two primary areas of the price specification under review are expanding the number of nickel metal shapes included in the price assessment, along with the environmental, sustainability and governance (ESG) metrics used to qualify material for the price assessment.

The inclusion of more nickel metal shapes would increase the liquidity captured in the price assessment, while the additional ESG metrics would further tighten the standards for qualification to ensure a more transparent price assessment.

The proposed amended specification will be as follows (proposed amendments in italics)

MB-NI-0256 – Nickel low-carbon metal premium, cif global, $/tonne
Quality: Briquette, pellets, rounds or powder, 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 or via a independent third party lifecycle assessment (LCA).
Additional ESG factors: All assets and third-party feeds should be in compliance to ICMM’s Mining Principles and Towards Sustainable Mining, as well as the Initiative for Responsible Mining (IRMA).
Quantity: Min 20 tonnes
Location: CIF global premium, 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. Sanctioned material will not be considered for the price assessment.

This price is part of the Fastmarkets base metals package.

The consultation period for this proposed amendment starts from May 1 and will end on May 29. The amendment will then take place, subject to market feedback, on June 3.

To provide feedback on this price 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 nickel 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