Sources reported a lack of active domestic buyers in Europe for black mass, with some consumers heard to be looking to offload tonnages they booked in 2023.
And prices for battery raw materials have decreased, pushing down payables for black mass in Europe to a greater extent than in Asia, according to market participants.
“Europe is a buyers’ market for black mass, while Asia is still relatively hungry for units. Asian capacity still has to be serviced,” a recycling source told Fastmarkets, adding that this meant buyers in Europe were in a position to push down payables.
“Payables dropped significantly in Europe in the new year. Let’s see how that evolves in the coming weeks,” an EU black mass consumer source said last week, adding that the main reason for this decline was “mainly an oversupply of black mass.”
A major producer source said that the European market is “very soft” and that payables had dropped again since the Christmas holiday.
Some offers of nickel cobalt manganese (NCM) black mass in the European domestic market were heard at payables of 45-50% ex-works for nickel and cobalt, while a recent deal was heard at payables around 52% ex-works in Western Europe.
Previous deals were heard in late 2023 at payables of 50-55% ex-works for nickel and cobalt in NCM black mass.
Fastmarkets’ assessment for black mass, NCM/NCA, payable indicator, nickel, domestic, exw Europe, % payable LME Nickel cash official price and for black mass, NCM/NCA, payable indicator, cobalt, domestic, exw Europe, % payable Fastmarkets’ standard-grade cobalt price (low-end) were at 47-52% on January 10, both down by 3 percentage points week on week from 50-55%.
Black mass prices hold firm in Asian markets
Payables have held firmer in Asian black mass markets, sources told Fastmarkets.
Korean buyers have been told that they will need to raise their target prices to secure material, according to market participants.
“Overseas suppliers were reluctant to lower their NCM black mass offers to anywhere below payables of 70% [CIF South Korea for nickel and cobalt, including value of lithium]. But we need to buy some extra volume for our production in the second quarter of 2024,” a major buyer source in Korea said last week.
Offers of NCM black mass from the US were heard on January 10 at payables of 72-73% CIF South Korea for nickel and cobalt, including value of lithium.
“NCM black mass sellers are looking for at least payables 71-72% [CIF for nickel and cobalt including value of lithium],” the Korean buyer source told Fastmarkets.
Key market participants believed that the prevailing workable payables for Korean buyers were at 65-70% CIF South Korea for nickel and cobalt, lithium value included.
Meanwhile, offers of black powder were heard at 80-85% CIF Korea for nickel and cobalt including lithium value on January 10. The corresponding material has lithium content over 6%, Fastmarkets heard. Bids for this type of material were heard at 70-78% CIF in recent days.
“Demand for raw materials remained low, so the trading of black mass in the past week has been limited. We are only operating at 50% capacity due to thin margins,” a second Korean buying source told Fastmarkets.
Fastmarkets’ assessment for black mass, NCM/NCA payable indicator, nickel, cif South Korea, % payable LME nickel cash official price and for black mass, NCM/NCA, payable indicator, cobalt, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end) were both at 66-70% on January 10, unchanged week on week.
Fastmarkets’ assessment for black mass, NCM/NCA, payable indicator, lithium, cif South Korea, % payable Fastmarkets’ lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was 3-5% on January 10, also unchanged week on week.
Buying interest for lithium cobalt oxide (LCO) black mass remained slow in Korea.
Indicative bids for LCO were heard last week at 50% CIF South Korea for cobalt including value of lithium, but offers of the material were heard at 65-73% CIF, according to market sources.
Fastmarkets’ weekly price assessment for black mass, LCO, payable indicator, cobalt, cif South Korea, % payable Fastmarkets’ standard-grade cobalt price (low-end) was 58-63% on January 10, unchanged week on week.
And Fastmarkets’ weekly price assessment for black mass, LCO, payable indicator, lithium, cif South Korea, % payable Fastmarkets’ lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was 3-5% on Wednesday, also unchanged week on week.
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