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Fourth lithium miner sells cargo 10% above spot
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Fourth lithium miner sells cargo 10% above spot
Mar 27, 2024 11:08 PM

MELBOURNE, March 28 (Reuters) - Lithium miners are

receiving prices for their contracted material that are more

than 10% above spot prices, reflecting renewed interest from

battery chemicals makers.

Four lithium deals in the past fortnight have been achieved

at elevated levels, according to company and media reports,

adding to signs the market for the battery raw material has

stabilised after prices plunged 80% in the past 12 months.

Miners say that spot market prices have lagged behind those

they are selling for amid a broader industry discussion about

pricing transparency. Contracted prices are not typically made

public, although price providers will be able to include these

lithium deals into their calculations, lifting prices.

"Last week, MinRes sold spodumene concentrate at $1,300 a

tonne, more than 10 percent higher than the current spot price,"

Mineral Resources Chief Executive of lithium Joshua

Thurlow said in a statement to Reuters on Thursday.

"It's clear the market is waking up to the future demand for

lithium that is required for the global energy transition as

long-awaited supply projects slow down or fail to materialise."

MinRes is now looking at selling via a digital auction

platform to generate "real price transparency," he added.

Brazil's Sigma Lithium Corp ( SGML ) on Wednesday said it

had received $1,333 a tonne for a 22,000 lithium concentrate

shipment, including value added tax.

Meanwhile, Albemarle sold 10,000 tonnes of Western

Australian lithium concentrate this week for around $1,200 per

tonne, according to price provider Fastmarkets, citing market

participants.

The concluded price was slightly higher than Fastmarkets'

spodumene spot price assessment of $1,000-1,100 yuan per tonne

on March 22, it said.

Albemarle said it was not publishing the prices achieved

through the recent bidding event out of respect to bidders.

"Our emphasis is on promoting price transparency and allowing

participants to state what they consider the appropriate price

to be through private bids," it said.

"We see this as a responsible approach to price discovery

that can lead to fair product valuation - for both buyers and

sellers - and drive towards a more robust, sustainable market."

These results come after Pilbara Minerals ( PILBF ) on March

14 said it had accepted an offer for a shipment of 5,000 tonnes

lithium concentrate for December for $1,200 a tonne.

Dan Morgan at Barrenjoey said the results likely reflected

consumers restocking, and prices were likely to stay around

$1,200-$1,300 as higher prices would simply encourage supply to

restart.

"The market rebalanced very quickly as the result of a bunch

of cuts and project delays which probably were a bit larger and

faster than some might have expected," he said.

"I don't think demand is meaningfully better now than it was

several months ago and I don't think there's a strong case for

continued price appreciation in the next three to six months."

($1 = 1.5319 Australian dollars)

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