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Pilbara Minerals shifts focus to spot market

Pilbara Minerals says it is shifting its focus to sell more concentrate into the emerging spot market in response to rising demand from customers, saying it is seeing better prices on the open market than from contract buyers (reports The Australian)

29th July 2021
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The company said on Wednesday it shipped 95,972 tonnes of lithium concentrate in the June quarter, up from 71.229 tonnes in the previous quarter.
Its Pilbara lithium operations produced 77,162 tonnes, marginally down on the previous period.
Pilbara Minerals said growing demand for lithium concentrate was changing market dynamics in the sector as the battery supply chain scrambled for supplies of raw materials.
“In Pilbara Minerals’ view, it is now clear that there is currently a disconnect between longer dated spodumene offtake pricing outcomes which reference lithium chemical pricing inputs, compared to the emerging spodumene spot sales market,” the company said.
The company said it was seeking a review of pricing with its existing offtake partners in light of market conditions, and trying to increase its shipments into spot contracts.
“Pilbara Minerals is seeking to maximise its exposure to this dynamic via its BMX digital sales platform, facilitating trade auctions for any product available outside existing longer dated offtake arrangements,” the company said.