Metals & Mining Theme, Non-Ferrous

March 04, 2024

Platts to change nickel conversion factor in daily mixed hydroxide precipitate calculated price

Platts, part of S&P Global Commodity Insights, will change the nickel conversion factor used in its daily mixed hydroxide precipitate (MHP) all-in-price basis nickel sulfate, to 0.223 from 0.225 currently, effective April 1.

Platts assesses MHP CIF North Asia as a percentage payable to Platts daily nickel sulfate DDP China spot price assessment and as a separate payable to the LME nickel metal monthly average. The change will affect the all-in calculation for MHP on a nickel sulfate payable basis and reflects feedback that a lower conversion factor is more representative of typical market practice.

The change was first proposed on Feb. 16, 2024, in a subscriber note available here:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/021624-platts-proposes-to-change-nickel-conversion-factor-in-daily-mixed-hydroxide-precipitate-calculated-price

The all-in calculation will be updated as follows:

Assessment Symbol Current formula New formula
MHP CIF North Asia, All-in price basis Platts nickel sulfate DDP China BATMA00 (Yuan/mt) Platts nickel sulfate DDP China (BATNS04; Yuan/mt), divided by a nickel conversion factor to obtain a nickel metal contained value (0.225), multiplied by Platts MHP payable basis nickel sulfate (BATMB00; %) Platts nickel sulfate DDP China (BATNS04; Yuan/mt), divided by a nickel conversion factor to obtain a nickel metal contained value (0.223), multiplied by Platts MHP payable basis nickel sulfate (BATMB00; %)

The change will also affect the MHP All-in $/mt conversion basis nickel sulfate (BATME00) and associated monthly averages.

There will be no change to the quality specification for the underlying nickel sulfate DDP China assessment, which reflects minimum nickel content of 22%.

The assessment is published on Platts Nonferrous Metals Alert, Platts Metals Daily, Platts Connect, Platts Market Center, and in the Platts price database under the symbols listed above.

The assessment is included on pages MTL8888 and PMA8888 alongside Platts full suite of battery metals assessments.

Please send all comments and questions to battery_metals@spglobal.com and pricegroup@spglobal.com

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.