There may be a glimmer of clarity regarding spodumene pricing and generally acceptable grade and impurity benchmarks on the horizon. While FastMarkets has received the LME contract to supply a lithium price, it would be helpful to have a specific, semi-reliable spodumene indicator. Enter SMM
After a period of market research, SMM will add coverage of the price of spodumene concentrate from July 8th 2019. This will be adjusted on a daily basis (1300 hrs China Standard time) and measured CIF in US dollars per ton.
The catalyst for this move has been rapidly increasing spodumene concentrates into China and the desire for pricing clarity demanded by upstream and downstream entities. The new service will aim "to provide reference,representative, fair and scientific" raw material pricing.
The price range will cover:
Li2O grades between 5.5% and 6.2%.
Impurities Fe2O3 < 1.5% & Mica <3%.
It is my opinion based upon research that these specifications cover spodumene suitable for EV BG Li Chemicals. It is still my opinion that all current Australian spodumene concentrate is consider to be of very high standard in China and globally.
The daily spodumene price quotation will be listed for 6% Li2O grade by performing a coefficient conversion. Product transactions outside the specs may be standardised. Minimum transactions 5000 tons
Entities linked to the standard unit calculations include:
Sichuan Yahua Industrial Group Co., Ltd.
Galaxy Resources Ltd.
Baosteel Resources Co., Ltd.
Jiangsu Ronghui General Lithium Industry Co., Ltd.
Zhangzhou Yuanhuitong Lithium Industry Co., Ltd.
Guangdong Weihua Co., Ltd.
Mitsui Products Trading Co., Ltd.
Sichuan Cantou Dingsheng Lithium Industry Co., Ltd.
Shandong Ruifu Lithium Industry Co., Ltd.
From <https://news.smm.cn/news/100943636>
DYOR
