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)