Dear cobalt lithium new energy industry customers: in order to improve the quotation system of SMM cobalt lithium industry chain and facilitate industry customers to understand the consumption and application of lithium metal, SMM decided to add a new industrial grade lithium hydroxide price point from May 25th, 2020 after a certain period of precipitation and in-depth market research.
Shanghai Nonferrous Network (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any substantive transaction, but maintains close communication with the buyer or seller of the transaction as a market observer or organizer, and provides relevant services for the market. By communicating with industry insiders, SMM continuously develops, reviews and revises its methodology, adopts the most common product specifications, terms and conditions of trade in the industry, and attaches equal importance to normal transactions that meet specification standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.
SMM publishes daily spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets), often referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM prices (all will be published on SMM's official website www.smm.cn for inquiry). The methodology stipulates the methods and procedures for the generation and release of SMM prices, and produces and publishes SMM prices in strict accordance with the provisions of the methodology.
In order to meet the actual situation of the spot market, SMM will make necessary revisions to the SMM price methodology and announce it on the official SMM website before May 25, 2020. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please check the contact information on SMM's official website www.smm.cn). This document sets out the standard for setting the spot price of industrial-grade lithium hydroxide. The purpose of SMM in formulating this standard is to establish a transparent and verifiable SMM pricing mechanism.
2.1 definition of price
SMM industrial grade lithium hydroxide quotation is an evaluative price produced and issued by SMM according to this methodology and can be used by both parties as a reference basis for industrial grade lithium hydroxide spot trade settlement. This price reflects the most likely transaction including tax in each full quotation cycle before the release time of industrial grade lithium hydroxide price, when SMM price members can check the historical price at the same time.
2.2 method of generating price
SMM obtains the quotation of industrial grade lithium hydroxide by adopting the standard. Every day, the buyer is appointed to inquire the bid unit, and the inquiry information is inputted into the internal system of SMM. On the basis of the spot transaction price collected from the main body of the industrial grade lithium hydroxide market, the market transaction price confirmed by both buyers and sellers must meet the requirements of fairness, negotiability, replicability and so on. The standard collection price includes the actual transaction price of the spot that has been concluded by the local standard acquisition enterprise.
2.3 methods of adopting standards
According to the bid adoption confirmation agreement, SMM will regularly collect price information from the contact person of industrial grade lithium hydroxide industry through telephone, WeChat, email and other means. The price information includes the closed price, the most likely pending transaction price of the enterprise, etc., and all instant messaging, e-mail communication and any face-to-face communication records will be archived. Details of telephone communication will be recorded and entered into the database. SMM analysts are required to comply with the "compliance system" when reporting to their supervisors any forced or threatened communication from market participants, or any induced offer that attempts to influence the assessment. After the price is released, SMM will not revise or adjust it on the same day.
2.4 Product standards
Industrial-grade lithium hydroxide: LiOH ·H2O≥ 56.5%, which meets the requirements of "GBT 8766mur2013 lithium hydroxide monohydrate" for various indicators of industrial-grade lithium hydroxide.
2.5 unit of account
RMB 10,000 yuan / ton
2.6 forms of expression
Presented in the form of interval, including tax price (including 13% VAT)
2.7 release time
1230 per working day (except Chinese statutory holidays and weekends)
2.8 Quote process
Every working day, SMM 9 / 30 / 12 / 30 / 9 / 30 / 12 / 30 / day to carry out the quotation of industrial grade lithium hydroxide. The specific process is as follows:
2.10 Methodology change
All markets are changing, and SMM is responsible for ensuring that the methodology for market reporting changes synchronously with the market. As a result, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. SMM will follow the formal external consultation process for all substantive and non-urgent potential changes. Major changes are then announced and at least 28 days' notice is given, inviting comments from the industry, unless special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcies, etc.) shorten the notice period. SMM promises to scrutinize all comments about proposed methodological changes, but in some cases it may have to change the methodology against the wishes of some market participants. In addition, SMM has a formal methodological consultation process. SMM promises to hold formal consultations on methodology every three years. The date of the last consultation and the deadline of the SMM's commitment to hold the next consultation are at the top of the methodology document.
Welcome more related enterprises in the industry chain to participate in and support SMM to better serve cobalt and lithium related enterprises.
If in doubt, please call:
Qin Jingjing, Cobalt and Lithium Research team of Shanghai Nonferrous net, contact: 021mur51666828