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Benchmark: What Drove Lithium Prices In December?

by:GSL ENERGY     2020-06-12
Benchmark is a price data collection and evaluation company focusing on the supply chain of lithium ion batteries.
They provide price data, analysis and forecasting services for lithium ion cathode and anode raw materials, especially lithium, graphite, cobalt and nickel.
Here is an excerpt from the benchmark lithium price assessment-
December 2017 audit.
With the promotion of the new large factory announcement and the original equipment manufacturer (OEM) partnership, the lithium demand forecast for December 2017 continues to strengthen
Short-term prospects and the rapid growth of new energy vehicle production in Chinaterm prospects.
China\'s electric vehicle production hit a record high in November 2017
More than 30% higher than any time recorded last month.
The government has decided to extend subsidies for another three years, and production is expected to grow significantly further in 2018.
Despite these pressures, the price of lithium remained relatively stable for the full year of December as China\'s conversion facilities continued to introduce new supplies.
The Chinese market has led prices up in the past two years, and the market has stabilized as lithium carbonate supply pressures ease.
Subsequently, the cost insurance and freight (CIF) prices for lithium carbonate entering Asia fell by 1% this month.
As it is expected that more new raw materials will be available in the Chinese market in 2018, the converter will increase the capacity of the battery.
The level processing capacity will have a significant impact on the price of entering the new year.
In addition to the expected increase in supply of Greenbush, Catlin Mountain, Marion Mountain and wojina mountain in Western Australia, professional mineral producer NV has announced plans to increase the supply of lithium concentrate from its Mibra Tantalum mine in Brazil.
With the mechanical completion of the project to be completed in April, the company plans to produce for the first time by June 2018
The annual capacity is 90,000 tons (tpa ).
The goal of the additional investment is to increase this ratio to 180,000 tpa by 2019, most of which will be sold to unnamed overseas partners.
While China will increase production of new raw materials, exports are limited, meaning other countries targeting the rapid expansion of lithium-ion battery capacity will have to strengthen their supply chains.
Amid concerns about reliance on raw materials, US President Donald Trump signed an executive order in December to reduce reliance on key minerals.
This could have a positive impact on new mining projects in the United States.
Following the sharp rise in lithium carbonate prices in H2 2017-
Driven by spot market transactions in China-
Throughout December, high-end prices fell in the Asian price range, with average prices falling slightly.
Benchmark cost insurance and freight (CIF) Asian lithium carbonate prices fell to an average of $20,750 per ton in December, down from a peak of $21,500 per ton in October 2017
The end of the price range reached $25,000 per ton.
Although the pressure on the upper layer has eased
After the end of the price range, the average price in Asia has dropped slightly, and prices entering other regions are usually longer
With a gradual shift to Asian price levels, the long-term base is strong.
The CIF price of lithium carbonate in North America climbed 0.
The average price in December was $ 8%, while the offshore price in South America was stable at $14,000 per ton.
Entering 2018, the increased quantity will be shipped at the new contract price, and prices in Europe and North America are expected to continue to maintain the high-end trend of the current price level.
The introduction of new hydrogen oxide supplies in H2 in 2017 failed to see a sharp drop in price levels, especially in the Asian market, where prices rose slightly throughout December.
The price of Chinese exports rose by 2%, while the average CIF price in the Asian market rose by more than 1%, reaching $20,500/ton, the highest since September.
Although there were fewer sales in 2017 and higher premiums-
More restrictive
End of price range-new longer-
Over the whole year, there has been a slight increase in the achievement of regular agreements, with few low-cost transactions.
With the strong prices of Asian consumers, North American suppliers have gradually increased their offer, with an increase of 0 in the inquiry near the end of the year.
Offshore prices in the region rose by an average of 8%.
According to our analysis and expectation, the supply of new raw materials entering China\'s conversion facilities may lead to a slight decrease in the price of hydroxide in 2018, however, A slowdown in Chinese production near the Spring Festival could see strong prices in the first quarter.
Raw materials: the prospect of new raw material supply has been strengthened again in December, and it is reported that amg nv hopes to double its lithium concentrate production in Brazil\'s Mibra mine by 2019.
The company aims to make its first production from its new 90,000 tpa lithium plant by June 2018, and to provide condensed products to an unnamed overseas partner.
Elsewhere, pilemon Minerals2 has signed another offshore agreement to sell direct shipping of lithium ore to Australian iron ore company Atlas iron Ltd, and subsequent concentrate is expected to be sold to the Chinese market.
Lithium carbonate: It is estimated that lithium carbonate production declined slightly in December, while production in China and Chile declined.
During the whole period of 2017, the supply of raw materials for China\'s conversion facilities increased and chemical production gradually increased, but not all of these new raw materials have been transformed.
As the supply of new raw materials is expected to continue until 2018, there may be a shortage of battery-grade carbon carbonate production, especially with the development trend of NCM cathode technology, which may continue to the new year.
Hydrogen oxide: It is estimated that with the increase of conversion volume outside China, the production of hydrogen oxide increased slightly in December.
While China remains a major producer of lithium hydroxide and is expected to increase production further in 2018, industry giants outside China will also increase production by the end of 2018.
The preliminary production plan for the Tianqi Lithium Kwinana plant will be carried out later
2018, while SQM aims to more than double the production of antófagusta at the same time.
Although this has increased for a long time
Long term supply prospects, conversion capabilities will continue to depend on the capacity of Chinese processors to produce large quantities of batteries
Hydrogen oxide in the new lithium pyroxene raw material. 1.
SQM (quedad Quimica Y Minera de Chile, Chile) is the holding company of the Global X lithium battery technology ETF (NYSEARCA: Nasdaq) as of 1/31/201816% of the funds. 2.
Pilemon Minerals is a holding company of the Global X lithium battery technology ETF (NASDAQ), with a weight of 3 kilograms as of 1/31/2018. 41% of the funds.
Definition: lithium raw material: This refers to lithium concentrate, most of which are converted into lithium chemicals for various end markets including lithium ion batteries.
Lithium chemicals: refers to any downstream chemicals produced from lithium pyroxene raw materials or lithium salt water.
For the purposes of this report, reference will be made to the overall trend of lithium carbonate and hydroxide;
We will cite any other chemicals in particular.
Lithium carbonate: primary basic chemicals produced by the lithium industry, used in various end markets including lithium ion battery cathode, ceramics and glass, and pharmaceutical.
Lithium hydroxide: the second largest chemical produced by the lithium industry, traditionally used to produce grease, but also competing with lithium carbonate in the lithium ion cathode sector, especially NCA chemistry.
Benchmark lithium price index: the benchmark lithium price index is the pricing index that tracks the monthly performance of lithium carbonate and hydroxide.
The index is calculated using a weighted average of eight lithium chemical grades to reflect the trade distribution on the market.
Free on Board: A trade term indicating whether the buyer or seller is responsible for the damaged goods in transit.
Cost insurance and shipping: a term that indicates that the seller must pay the shipping and insurance premium to the destination, but the risk is transferred to the buyer once the goods are on board.
Ex Works: The terms in which the seller provides the goods at a specific location, but the buyer pays for the transportation.
The index return is for illustration only and does not represent the actual performance of the fund.
Index performance returns do not reflect any management fees, transaction costs or fees.
The index is non-hosted and cannot be directly invested in the index.
Past performance does not guarantee future results.
This material represents an assessment of the market environment at a specific point in time, not a prediction of future events, nor a guarantee of future results.
Readers should not rely on this information as research or investment advice, which is used only for educational purposes.
Unauthorized distribution of this information in any form is a violation of copyright law and may bring legal action against you or your company.
Benchmark Mineral Intelligence Limited does not provide investment advice.
Neither Global X Management Company Limited nor security investment distribution company.
It is affiliated with Benchmark Mineral Intelligence.
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Investment may be affected by large fluctuations.
There are additional risks in investing in lithium and lithium mining.
Before investing, carefully consider the investment objectives, risk factors, fees and fees of the fund.
This information and other information can be found in the full or summary prospectus of the fund and can be found by calling 1-888-GX-FUND-1 (1. 888. 493.
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Read the prospectus carefully before investing.
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