Benchmark begins public consultation on increasing two cobalt prices to weekly frequency and to update specification for EXW Europe metal price

Benchmark Mineral Intelligence announced today that it has started a formal public consultation on changes to its Cobalt Price Assessment Methodology.

Increased frequency

Growing demand for cobalt chemicals from the lithium ion battery industry has increased the volume and frequency of materials being traded, creating more price volatility over a short period of time, allowing for more regular price publication.

Benchmark proposes to move two of its cobalt price grades from semi-monthly to weekly frequency to give a more comprehensive assessment of price trends, with the remaining six price assessments being assessed on a two-weekly basis.

Higher frequency publication is considered for cobalt sulphate, EXW China basis, and cobalt hydroxide, CIF Asia basis.

Following feedback and discussion with a number of market participants, Benchmark proposes to increase the regularity of its cobalt sulphate and hydroxide pricing to weekly, to be published on Wednesday, by 4pm (London). The remaining cobalt price assessments will shift from semi-monthly to alternate Wednesday by 4pm (London), to better align with the new publishing schedule for cobalt sulphate and cobalt hydroxide.

As the lithium ion battery industry continues to develop, the frequency and volume of battery material trading is increasing. To give an accurate and comprehensive assessment of price movements, the frequency with which Benchmark publishes prices must also increase.

Evolution of cobalt metal price forms

As the landscape of the cobalt metal market continues to evolve, the metal forms that drive the cobalt metal price is evolving in turn. This has resulted in an expansion of the metal forms being applicable to cobalt metal in the spot market. Historically, Benchmark has assessed briquettes and broken cathodes as part of its cobalt metal price assessment.

Benchmark is proposing changing the language and price inputs considered in its pricing methodology from “Briquettes and broken cathode” to “Briquettes, cut cathode, and broken cathode, excluding metal from Sumitomo and Nikkelverk, which are typically destined for the superalloy market and usually priced differently to material used in alternative end markets.”

As a result, Benchmark is seeking feedback on its plans to publish cobalt grades more frequently, and on the modification to our acceptable forms for cobalt metal.

Benchmark Price Assessments – contact us:

The proposed changes would impact three grades currently collected by Benchmark:

Cobalt sulphate, EXW China, ≥20.5% CoSO4

Cobalt hydroxide, CIF Asia, ≥20% Co(OH)2

Cobalt metal, EXW China, ≥99.8% Co metal

Benchmark invites feedback from active market participants by the latest 15 May 2024.

Comments are welcomed via submission to: prices@benchmarkminerals.com