By Steve Fiscor, Editor-in-Chief
Metal prices remained within normal ranges for the first month of 2024, except for palladium and lithium hydroxide (LiOH), which were down 9.6% and 14.2% respectively.
Palladium’s slide continues and future prices have the metal dropping below platinum for the first time since 2018. In late December, palladium prices jumped to $1,233 per ounce (oz). On January 16, the price for palladium dropped below the $1,000/oz threshold again. According to the E&MJ Price Index, palladium was trading at $958/oz on February 2, 2024.
Traders attributed the December spike to the announcement that the United Kingdom would sanction Russian metal imports, which would primarily impact nickel, and palladium as a byproduct. Traders covered a portion of a large net short position in palladium. Once the shorts were covered, palladium prices returned to the current range of $950/oz to $1,000/oz.
Softening demand for electric vehicles, especially in China, has created a glut of lithium. Lithium production grew 23% in 2023 according to the U.S. Geological Survey. The E&MJ Price Index is showing $13,250 per metric ton (mt) for LiOH on February 2, 2024. At the beginning of Q4 2023, the price for LiOH was $24,700/mt. At the height of the lithium frenzy at the end of 2022, the price for LiOH was $83,900/mt.
Month-to-month nickel prices appear to have stabilized, dropping only 0.8% to $16,235/mt. Nickel prices are down nearly 50% from $30,000/mt at the end of 2022. In this edition, E&MJ reported that BHP is looking at its options for its nickel operations. IGO placed its Cosmos project on care and maintenance. Other announcements from Australia include Fortescue, Panoramic Resources and First Quantum Minerals closing nickel mines as well.
Indonesian nickel production increased 29% according to the International Nickel Study Group. Miners that invested in “green” nickel operations while prices were higher are now realizing the market may be unwilling to pay for that premium.
