Platts proposes to specify location basis for Lithium Hydroxide CIF North Asia assessment, discontinue related import parity

S&P Global Platts is proposing to specify the location basis for the Platts Lithium Hydroxide CIF North Asia assessment as CIF Japan/South Korea, and to discontinue the import parity calculation, effective Oct. 1, 2020, and seeks market feedback on this proposal by Sept. 16, 2020.

Platts has observed stable import volumes of lithium hydroxide to Japan and South Korea from China, a trade flow which is expected to be maintained in the medium- to long-term. The assessment's location basis is currently defined as Japan, South Korea and China. Platts would also reflect pricing information about cargoes delivered to other countries in its assessment, after normalization to the stated location basis. Freight, quality differentials for lithium hydroxide cargoes, as well as the spreads and dynamics between different regions may be considered in normalization in the Lithium Hydroxide CIF North Asia assessment.

With the redefinition of the location basis, Platts is also proposing to discontinue the Yuan denominated import parity calculation of Lithium Hydroxide CIF North Asia, since the lithium hydroxide import business to China is no longer considered as the main trade flow.

The affected assessments include Lithium Hydroxide CIF North Asia assessment and the import parity calculation:

The affected assessments are published on the fixed page PMA8888 of the real-time Platts Nonferrous Metals Alert, Platts Metals Alert, in Metals Daily and in Platts' price database.

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

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