Notes Lithium Carbonate Price Rises in China
Perth, Aug 6, 2012 AEST (ABN Newswire) - Lithium producer Galaxy Resources Ltd (
ASX:GXY) says prices for both technical and battery grade lithium carbonate in its key market, China, have risen significantly on the back of tight demand and supply fundamentals, with current prices up almost 17% on the same time last year.
Chinese lithium carbonate producers have lifted domestic lithium carbonate prices, and the uncontracted spot price for battery grade lithium carbonate in China has hit levels of up to RMB 45,000/tonne, or approximately US$7,000/tonne, in recent months. The Company also reports that technical grade lithium carbonate prices have followed the same trend with uncontracted spot prices up to RMB 40,000/tonne or approximately US$6,250/tonne.
Lithium market watcher, Asia Metal Pty Ltd, said in a recent note that the, "mainstream price of battery grade lithium carbonate rose to about RMB 42,000-44,000/tonne (US$6,650-6,960/tonne) and for small orders, many suppliers have sold at prices as high as RMB 45,000/tonne (US$7,120/tonne)."
The following graph shows battery grade lithium carbonate prices in China tracked by Asian Metal Ltd in the last 12 months, demonstrating a 17% increase in prices on the same time last year.
The price increases in China follow the increases in global lithium product prices, including lithium carbonate, announced by major producers Rockwood Lithium and FMC Lithium this year.
- Rockwood Lithium announced in early May 2012 to lift global lithium salts prices by 22% or US$1,000 per metric tonne, effective 1 July 2012.
- FMC Lithium announced a price increase of 20% on 23 June 2011 and then another increase of US$1,000/tonne on 18 June 2012.
- Talison Lithium (spodumene supplier) announced a spodumene price increase of 15% in December 2011 and a further 10% increase on 12 July 2012.
Galaxy Managing Director Iggy Tan said: "It is pleasing to see such buoyant battery grade lithium carbonate prices in China, which will ultimately translate into higher revenues from our Jiangsu operations. With Jiangsu to reach full capacity in 2013, Galaxy is well placed to take advantage of the strong lithium market outlook."
In a recent note, Jonathan Lee from Byron Capital said: "The outlook for lithium is very strong in light of some of the uncertainty of other metals such as copper and many of the industrial metals. Lithium has grown roughly at 10 to 15 percent over the past two years on a per-annum basis. We're having another strong year this year."
The Company recently announced that its Jiangsu Lithium Carbonate Plant had successfully achieved battery grade quality across all specifications, meeting the Plant's design. This means that as well as adhering to the 99.5% purity criteria, the product now meets the prescribed tolerances for impurities required by its battery cathode producing customers.
View the full Galaxy Resources announcement including the China Battery Grade Lithium Carbonate graphic, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-GXY-599323.pdf
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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