SQM’s Quest To Boost Lithium Prices Fails as Rosatom Joins Industry — Panjiva
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SQM’s Quest To Boost Lithium Prices Fails as Rosatom Joins Industry

Chile 101 Materials - Metals/Mining 747

Competition in lithium supplies – used in the manufacturing of batteries – is hotting up. Russia’s Rosatom is set to join Wealth Minerals’ new project in Chile, S&P Global Platts reports, while EnergySource may be close to producing lithium in California according to the LA Times.

That comes just as the major Chilean exporters – SQM and Rockwood – have turned the taps back on. Panjiva data shows that exports climbed 8.1% year over year in August, following a 44.5% jump in July. Growth in August was led by a 69.7% surge in exports to China and a 69.7% rise in shipments to the EU.

RECOVERING SUPPLIES TO CHINA, EUROPE LEAD LITHIUM GROWTH

Chart segments Chilean exports of lithium by destination.  Source: Panjiva

The surge in volumes reversed a 2.6% slip in 2Q as SQM tried to manage prices upward, as outlined in Panjiva’s research of Aug. 28. The improvement in volumes shipped has been accompanied by a further slump in achieved prices. The average export value per ton fell 34.0% in August after a 33.3% slide in July and an average 25.1% reduction in 2Q. 

The resulting export value of $8,642 per ton in August was the lowest since Dec. 2016.

With more competition emerging and an apparent race to boost exports it will require a recovery in demand from the electric vehicle and consumer electronics industries to make a meaningful difference to export values.

LITHIUM’S DOWNTURN HAS LASTED FOR A YEAR ALREADY

Chart compares change volumes and value per ton of lithium exported from Chile.  Source: Panjiva

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