In Korea, increased capacity initially kept demand high, but payables declined in the second half of July due to weaker battery metal prices, according to Fastmarkets. Nickel, cobalt and lithium prices continued to fall throughout July, reducing black metal payables in China and Southeast Asia and easing competition for Korean recyclers.
Asian Market Prices
In early July, low impurity nickel-cobalt-manganese (NCM) black metal from the US and Europe traded at 75-77% CIF South Korea for nickel and cobalt, including lithium. At the end of the month, buyers were capping offers at 70-73% CIF South Korea. A South Korean source reported that suppliers were either exiting the market or increasing liabilities to offset falling nickel prices, but buyers were resisting higher costs.
By the end of July, North American and European suppliers were offering 75-77% CIF Korea, down from 75-80% CIF earlier in the month. A Chinese source cited pessimistic expectations due to weaker metal prices and Western tariffs on Chinese electric vehicles impacting lithium prices. Southeast Asia has avoided buying black-mass as lithium carbonate prices have fallen. The tariffs are expected to impact the global black-mass market for the remainder of the year.
Fastmarkets’ July NCM/NCA black mass assessments in South Korea averaged 71.7% for nickel and cobalt, down from 72% in June, with lithium stable at 4%. The inferred black metal price averaged $4,252.63 per tonne, down from $4,454.34 in June.
European Market Prices
European black-mass commitments fell in July as Asian demand weakened. Northern European lithium cobalt oxide (LCO) black metal deals closed at 50% ex-works for cobalt, down from 55% in June. NCM black-mass offers were in the 50-55% ex-works range, with bids at 60% ex-works and higher.
Lower Asian buying and increased supply pushed European black mass bids lower, reducing the cost of battery inputs. BASF paused its Spanish battery recycling refinery plans, citing slow EV adoption in the EU.
Fastmarkets’ July NCM/NCA black mass payables in Europe averaged 57.5% for nickel and cobalt, down slightly from 57.75% in June. The derived black-mass price averaged $3,333.60 per ton, down from $3,481.63 in June.
Source: Fastmarkets
