Persistent oversupply and strong bargaining power from Chinese buyers drive down  spodumene concentrate CIF prices

For the week ending November 16, the CIF price of spodumene concentrate significantly decreased, driven by ongoing oversupply and strong price negotiation from Chinese buyers. The cost for 6% grade spodumene concentrate is forecasted to fall from $1700-$1800/mt to $1500-$1600/mt. In response to high shipment volumes and rising supply from other regions, some Australian mines have reduced their spot sale prices. SMM's calculation up to September shows a persistent surplus of around 60,000 mt LCE in lithium ore imports. High inventories of lithium ore at ports and major smelters were still prevalent. Despite this, fluctuating ore supply at smaller lithium salt factories and increased costs at new mines next year indicate that spodumene price declines will continue. Many cathode material producers are actively sourcing first-hand spodumene from Africa, suggesting a short-term continuation of CIF price reductions for spodumene.