Platts proposes to update quantity, quality specifications of daily lithium spodumene assessments

Platts, part of S&P Global Commodity Insights, proposes to update the volume specification of its daily FOB Australia and CIF China lithium spodumene assessments to 5,000 mt, effective March 3.

Platts is also proposing to update the quality specification to define impurity contents.

Platts lithium spodumene 6% FOB Australia and 0.1% differential assessments currently specify a minimum volume of 1,000 mt, and the lithium spodumene 5.5% CIF China assessment specifies a minimum volume of 5,000 mt.

The proposed quantity change would align specifications across all three assessments to reflect typical volumes of 5,000 mt.

The proposed changes seek to reflect market feedback and Platts observation of a shift in the typical sizes of cargoes traded in the spot market.

Spot transactions of lithium spodumene were observed to have taken place in cargo sizes from 1,000 mt to 25,000 mt, with over 90% in sizes of 5,000 mt or more, data compiled by Platts showed.

The proposal to update the quantity specification to 5,000 mt reflects how the different ways spodumene is shipped -- containerized versus bulk, and within bulk, different vessel sizes -- may give rise to differing freight rates.

Platts would seek to normalize the various reported trades, bids and offers to the proposed standard specification.

To that end, Platts is seeking feedback on the typical price differences observed for cargoes of other volumes in the range 1,000 mt to 25,000 mt, as compared with a 5,000 mt cargo.

Preliminary market feedback has also indicated that high mica and iron oxide levels within spodumene attract penalties and therefore, could have an impact on the spot price of a cargo.

The addition of impurity contents to the quality specification would add further clarity to the assessment specification.

The proposed changes would impact the assessments as follows:

There would be no changes to other existing specifications.

A full description of Platts assessments methodology can be found here: https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf .

The assessments are published on pages MTL8888 and PMA8888 of Platts Nonferrous Metals Alert, Platts Metals Daily and in the Platts price database under the symbols listed above.

Platts invites feedback, comments and questions on this proposal to battery_metals@spglobal.com and pricegroup@spglobal.com by Jan. 31.

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.