Sudden strike by the world's largest lithium producer Salt Lake Lithium extraction concept broke out twice by the daily limit of Salt Lake shares in the afternoon.

SMM August 12: today, the salt lake lithium extraction concept plate suddenly broke out in the afternoon, Tibet Everest, Zhaoxin shares, Donghua Technology and Salt Lake shares rose by the daily limit, while stocks such as Jiuwu Hi-Tech, BYD, Western Mining and Koda Manufacturing rose. Among them, Salt Lake shares, which just resumed listing on August 10, have experienced two trading limits in intraday trading, and finally closed at 36.17 yuan per share.

On the face of the news, it is reported today that the strike that has recently engulfed the Chilean mining industry is spreading from copper mines to lithium mines. The Salar union, a Chilean brine processing company owned by Abel, the world's largest lithium producer, went on strike on Wednesday.

It is reported that as early as a meeting on July 30, the workers of the union had already begun to vote on the strike, and then the Albemarle Salar factory applied to the Chilean Ministry of Labor for compulsory mediation on August 3, but unfortunately the two sides still could not reach a compromise during this period.

It is important to note that the strike is taking place at a time when global lithium supplies are increasingly scarce, and even though Albemarle says it has emergency measures to ensure continued production operations, it will largely depend on the duration of the strike.

Chile, as the second largest lithium exporter in the world, the strike will undoubtedly have a certain emotional impact on domestic lithium imports, coupled with the news that Pilbara, the main Australian lithium mine, auctioned spodumene concentrate at historically high prices, the expectation of the industry for lithium extraction from salt lakes is growing day by day, and the development of lithium extraction from salt lakes is imperative.

Citic Securities said that the auction sales of lithium concentrate had an impact on the traditional pricing model, and the mainstream transaction price of lithium concentrate was expected to exceed 1200 US dollars per ton in the second half of the year. It is expected that the sharp rise in mineral prices will continue to push up lithium prices from the cost side, while the sharp fluctuations in the cost of extracting lithium from ores will also further enhance the strategic position of China's local lithium resources. Recommend Salt Lake shares and Ganfeng Lithium Industry, and suggest to pay attention to Rongjie shares and Yongxing Materials.

According to the spot price of SMM, as of August 12, the average spot price of spodumene concentrate (6% CIF China) has risen to US $850 / tonne, up 103.6 per cent for the year.

"Click to view the spot market of SMM metal.

SMM previously analyzed that the current market is affected by expected hype, contract stimulus, rising mineral prices and demand-side production capacity, and the quotation has risen significantly. The increase in hoarding sentiment may lead to market imbalance, and the increased influence of the seller's market will lead to an upward price.

Related reading: [hot stocks] Salt Lake shares rose twice in afternoon trading with a trading volume of more than 13.5 billion yuan.