Asian Metal meets representatives of lithium meeting held by China Nonferrous Metals Industry Association

On May 8-10 2013, China Nonferrous Metals Industry Association held lithium meeting. Sichuan Tianqi Lithium Industries, Inc, Sichuan Guorun New Materials Co., Ltd. (GRM), Beijing Chilith New Sources Co., Ltd., SQM (Beijing) Commercial Co., Ltd., General Lithium (Haimen) Corp., Jiangxi Ganfeng Lithium Co., Ltd., FMC, Luxiang Co., Ltd. and Sinopec (Tianjin Branch), etc. attended the meeting.

During the period of the meeting, Joy Kong, Associate Analyst of lithium market in the Minor Metal Dep. communicated with attendees. From early 2013, spodumene price continued to go up and the acquisition cost for Tianqi Lithium purchasing Talison is high. At present, Tianqi is going to negotiate with lithium salts producers about the contract for H2. Market insiders pay attention to whether Tianqi Lithium will raise spodumene price further or not. However, lithium cobalt oxide producers regard lithium carbonate as fixed costs. In addition, cathode materials of lithium battery producers compete intensely, so it is difficult for the cost rising of spodumene to pass on to the downstream factories.

At the same time, Sinopec (Tianjin Branch) reported to Asian Metal that the branch offices of Sinopec in Chongqing, Tianjin, Maoming, Jinan, etc. buy lithium hydroxide. For the time being, demand in oil grease industry is not strong.