Lithium concentrate auction sells for another record high
Australia’s Pilbara Minerals Limited held its sixth lithium pyroxene concentrate auction of the year on Sept. 20. The final sale price was $6,988/ton FOB, compared to the last auction on August 2, with a hammer price of $6,350/ton.
After considering exchange rate changes, the actual YoY increase in domestic prices in China was 14.3%. The corresponding lithium carbonate cost with tax is about 510,000 RMB/ton. This batch of concentrate is expected to be shipped from October 20 to November 20. Considering a reasonable logistics turnaround time, it is expected that its corresponding lithium salt is expected to be released to the market in January 2023 at the earliest.
| Previous auctions | ||||
| Auction time | Auction Price(usd/ton) | Condition of the subject | Turnover(ton) | |
| Frist time | 2021.07.30 | 1250 | SC5.5% | 10000 |
| Second time | 2021.09.13 | 2240 | SC5.5% | 8000 |
| Third time | 2021.10.26 | 2350 | SC5.5% | 10000 |
| Fourth time | 2022.04.27 | 5650 | SC5.5% | 5000 |
| Fifth time | 2022.05.24 | 5955 | SC5.5% | 5000 |
| Sixth time | 2022.06.23 | 6350 | SC5.5% | 5000 |
| Seventh time | 2022.07.13 | 6188 | SC5.5% | 5000 |
| Eighth time | 2022.08.02 | 6350 | SC5.5% | 5000 |
| Ninth time | 2022.09.20 | 6988 | SC5.5% | 5000 |
With the large-scale production of cathode material capacity in Q4 and peak consumption season, as well as the cost support of lithium concentrate, short-term prices are likely to reach a new record high, and long-term supply and demand still maintain a tight balance. And mica and other low-grade lithium resources overall significantly raise the marginal cost curve.
After entering the second half of the year, the downstream new energy vehicle industry chain are willing to catch up, which will increase lithium salt consumption, will also support the follow-up lithium salt prices continue to strengthen. It is expected that 2022Q4/2023Q1, in the case of lithium salt prices are expected to restart the upward trend, lithium concentrate will keep catching up with the trend.
Luoyang Tianhuan energy technology Co., LTD
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