[SMM analysis] the price of spodumene concentrate bottomed out and rose again next year will push the lithium salt forward.

"[hot] tomorrow! The grand annual meeting of the metal industry will begin! Come and watch the business cards of the guests.

SMM12, June 2: according to reports, the government of the state of Western Australia said that three lithium producers will receive a 50% royalty refund of spodumene concentrate within 12 months.

The three major lithium producers,: Galaxy Resources's Mt Cattlin business, Pilbara Minerals's Pilgangoora business and Altura Mining's Pilgangoora business.

According to SMM, the price of spodumene concentrate has been falling since 2020 and has bottomed out since the end of October. As of December 2, the price of spodumene concentrate was $405 / ton, down $102.5 / ton from its highest level since the beginning of the year.

Spodumene concentrate (6% Magna CIF China)-average price

"Click to view the SMM metal industry chain database

SMM believes that the recent spodumene market transactions are sporadic, domestic inventory is more, traders and lithium salt factories have volume. The demand for the transmission of new energy vehicles and materials to the lithium salt end has a large increase, but the actual operating rate of the smelter has not increased significantly, so the domestic demand for lithium ore is still at the normal level and continues to go to the warehouse.

In the first half of next year, with the gradual increase in demand and the commissioning of new production lines, the demand for spodumene raw materials will gradually increase. The production and sales of overseas mines are basically balanced in 2020, but some mines still have inventory, and it is expected that supply will gradually tighten in the first half of the quarter, and prices will gradually rise.

In terms of mines, so far, only 4 Australian spodumene miners are in production and 3 have circulating resources in the market. with the gradual start of prices, some unstarted mines (such as Bald Hills, Wodgina, etc.) may join the queue.

Therefore, spodumene raw materials will become an important support to promote the lithium salt industry to move forward slowly next year.