Fastmarkets launches Indonesia prices for nickel pig iron and mixed hydroxide precipitate

27 October 2023

Fastmarkets, an industry-leading cross-commodity price reporting agency is creating transparency in the battery raw materials market with the launch of free-on-board (FOB) Indonesia prices for nickel pig iron (NPI) and mixed hydroxide precipitate (MHP).

NPI and MHP are key products in the nickel industry. NPI is used in the production of stainless steel and increasingly in the production of other nickel intermediates. MHP is vital in the production of intermediate components for nickel-rich cathode lithium-ion batteries, particularly nickel manganese cobalt (NMC) chemistry batteries.

Nickel produced in Indonesia represents more than half of global nickel production, a level which is forecast to rise to up to 70% of global production by 2030. Production of class 2, non-LME deliverable nickel products is growing from established production hubs, of which Indonesia is the global leader. Fastmarkets' decision to launch these prices highlights the critical role Indonesia plays in the global metal and battery raw material supply chains.

Regional and product price divergence has been a consistent trend across nickel markets globally, creating the need for more granular price reporting. These new NPI and MHP prices FOB Indonesia will contribute to Fastmarkets' existing suite of nickel prices, which include assessments on a delivered duty paid (ddp) China basis for NPI and on a cif China, Japan and South Korea basis for MHP.

Raju Daswani, CEO of Fastmarkets, said: "The global nickel market is undergoing a major structural transformation, propelled by the demand for electric vehicles. Fastmarkets has worked closely with industry stakeholders, including major producers, the Indonesian government and trade bodies, to facilitate the introduction of the prices we're unveiling today. This launch represents a critical milestone in delivering the transparency that the market needs as it navigates this period of change. We remain steadfast in our commitment to providing the market with trusted prices and analysis."

The new FOB Indonesia main ports prices will be assessed daily and published at 4pm London time. The price specifications can be found here.