01 Apr 2024 | 06:56 UTC

Platts changes nickel conversion factor in daily mixed hydroxide precipitate calculated price

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

Platts assesses MHP CIF North Asia as a percentage payable to the Platts daily nickel sulfate DDP China spot price assessment and as a separate payable to the LME nickel metal monthly average. The change affects 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

Following feedback, a decision to implement the proposal was published March 4, 2024: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030424-platts-to-change-nickel-conversion-factor-in-daily-mixed-hydroxide-precipitate-calculated-price

The all-in calculation is updated as follows:

Assessment Symbol Prior 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 also affects the MHP All-in $/mt conversion basis nickel sulfate (BATME00) and associated monthly averages.

The quality specifications of the underlying nickel sulfate DDP China assessment, which reflects minimum nickel content of 22%, remain unchanged.

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 make comments not marked as confidential available upon request.