Average Price of Lithium Carbonate Exceeds 550,000 yuan/mt, Refined Cobalt Prices Record Four-Day Losing Streak

SHANGHAI, Oct 28 (SMM) - According to SMM survey, the spot price of lithium carbonate had risen for ten consecutive days since October 14. As of October 27, the spot quotations of battery-grade lithium carbonate rose 3,000 yuan/mt in a single day to 542,000-560,000 yuan/mt, and the average price was 551,000 yuan/mt, hitting a new record high and exceeding  550,000 yuan/mt for the first time.

Supply in the spot market remains tight. Despite large-scale shipments by salt lake enterprises, the supply has not returned to normal levels due to worsening pandemic in Xi’ning, Qinghai province. Large smelters are focusing on delivery of long-term orders, with few goods available for sale in the spot market. The mainstream spot transaction prices of battery-grade lithium carbonate were around 550,000 yuan/mt.  

In addition, on October 24, Pilbara held a new round of pre-auction of lithium concentrate, and the bid price was $7,255/mt, which was $155/mt higher than that on October 18, an increase of 2.2%. The amount of lithium concentrate in this pre-auction is 5,000 mt, and the grade is 5.5%. After being converted, the costs of 1 mt of LCE was roughly 550,000 yuan/mt.

Domestic battery-grade lithium hydroxide prices went up along with lithium carbonate, rising to 535,000-552,000 yuan/mt yesterday, up 4,000 yuan/mt in a single day and also refreshing its historical high.

In contrast, the spot price of refined cobalt has fallen for four consecutive days. The SMM spot prices of refined cobalt have dropped to 343,000-360,000 yuan/mt, with an average price of 351,500 yuan/mt.

Refined cobalt plants have cut their ex-factory prices recently. The futures market also performed badly. Traders continued to lower their offers. Despite low inventory, trades were sluggish. Alloy plants restocked mainly as needed.