SMM Analysis Of China’s November Spodumene Concentrate Imports, With Notable Decline From Australia 

China imported 378,498 mt of spodumene concentrate in November 2023, down 18.4% MoM but up 20% YoY. Average import price was about $1,872/mt. The main reason behind falling spodumene imports in November was a dip in imports from Australia, a major lithium ore producer. Lithium concentrate imports from Australia in November fell 39% MoM to 211,095 mt, accounting for 55% of total monthly imports. Much of the blame for falling imports from Australia was that goods arriving at Chinese ports in November were mostly negotiated in October. Buyers and sellers were negotiating on Q4 pricing mechanism in October, which led to delayed shipments. In addition, the amount of spodumene concentrate arrivals in Sichuan in November was 32,191 mt, lower than 177,633 mt in September and 148,287 mt in October. Zimbabwean lithium ore arriving at Chinese ports were 82,059 mt in November, up 79% MoM, mainly due to the large amount of Zimbabwean lithium ore being shipped to China at the end of the third quarter.
It should be noted that the lithium concentrate data shown above was in accordance with customs data. In November, a certain amount of lithium raw ore from Australia and Brazil flowed into China. A batch of 15,049 mt of Australian lithium ore shipped to Fujian Province, with an average customs clearance price of $190/mt, and a batch of 14,063 mt of Brazilian lithium ore shipped to Shandong Province, with an average price of $100/mt. According to SMM research and speculation, this batch of ore from Brazil may be the green tailings of Sigma Lithium.
Looking forward, there will be still room for a certain decline in short-term spodumene concentrate prices. According to SMM understanding, offer for SC6 spodumene concentrate from a mine in Australia in December was lower than $1,000/mt. In spite of some profit losses, mines will probably keep production stable in a short run in order to maintain cash flow and stabilize stock price.