Fifth Pilbara Lithium Concentrate Auction in 2022 Set at $6,350/mt, Another Record High

SHANGHAI, Aug 3 (SMM) - On August 2, Pilbara Minerals conducted a new round of lithium concentrate auction, and closed the auction with a price of $6,350/mt, an increase of $162/mt or 2.6% compared with the auction on July 13, 2022, which was the same as the sixth auction price in history. The amount of ore in this auction is 5,000 mt with a grade of 5.5%, and the cost of 1 metric tonne of LCE is about 450,000 yuan. The batch of ore is expected to be delivered in mid-September. After considering the logistics cycle, the products are expected to enter the market in November or December. (Note: cost of 1 metric tonne of LCE: (6,350 (auction price) + 90 (freight rate)) × 6/5.5 (grade conversion) × 8 (unit consumption) × 1.13 × 6.75 + 25,000 (conversion margin) = 453,693 yuan)

If we look over the previous auctions, the auction price has returned to a high level after a slight correction last month, reflecting that auction companies are still quite optimistic about the lithium market. With the smooth ramp-up of the Pilbara project, its lithium concentrate auction activities have become more and more frequent. Under the short-term supply tightness in China, the mid and downstream players have also shifted their attention to the auction of foreign concentrates to address their urgent needs.

First auction: July 30, 2021 (date of auction), $1,250/mt (auction price), 5.5% (lithium grade), 10,000 mt (auction volume);

Second auction: September 13, 2021, $2,240/mt, 5.5%, 8,000 mt;

Third auction: October 26, 2021, $2,350/mt, 5.5%, 10,000 mt;

Fourth auction: April 27, 2022, $5,650/mt, 5.5%, 5,000 mt;

Fifth auction: May 24, 2022, $5,955/mt, 5.5%, 5,000 mt;

Sixth auction: June 23, 2022, $6,350/mt, 5.5%, 5,000 mt;

Seventh auction: July 13, 2022, $6,188/mt, 5.5%, 5,000 mt.