In Q2 2023, the Greenbushes lithium mine produced 395,000 tonnes of spodumene concentrate, and the unit cost of goods sold (excluding royalty) stood at $304/t, with an average realized price of spodumene (chemical and industrial grade) at $5,431/t FOB Australia. Greenbushes' EBITDA margin was still above 90% despite a slight increase in the cost of goods sold. The output of lithium concentrate of Pilbara was 163,000 tonnes, and the sales volume was 176,000 tonnes. Mt Cattlin produced 58,000 tonnes of spodumene concentrate, and the prices of lithium ore were about US$4,800/t (SC6, CIF China).
Affected by the long-term contract prices in Q2, the prices in Q3 continued to decline. In August 2023, the monthly average prices of 6% spodumene was US$3345.81/t, a MoM decrease of 8.48%, with US$30/t freight cost and 13% import tax included. The cost of lithium concentrate was about Yuan 3,815/t (calculated according to the current exchange rate) after importing, or about Yuan 220,000/t (excluding processing fees) when converted into lithium carbonate prices.
In August 2023, the average domestic spot price of 6% spodumene concentrate was Yuan 4,689 /mtu, a MoM decrease of 12.36%; the average spot price of lepidolite 3.5-4% was Yuan 3426/mtu, a MoM decrease of 14.84%.
The prices of spodumene and lepidolite fluctuated along with the lithium carbonate price change. In August, the market demand did not show a significant rebound amid sluggish market sentiment. The global supply of lithium resources increased with intensified oversupply in the market. Therefore, the prices of lithium raw materials continued to fall, and some traders continued to lower their offers in order to withdraw cash. It is expected that the prices of lithium ore would keep falling in the short term.
source: Mysteel
Written by Alex Xie, xiehan@mysteel.com
Edited by Aggie Hu, huchenying@mysteel.com
