According to Rockwood Lithium, one of the global giants of lithium carbonate, the company will increase the price of its lithium carbonate products such as lithium carbonate, lithium salt and lithium hydroxide by US$1,000/ton from July 1. The equivalent rate is about 20%. According to data from industry agencies, the average price of lithium carbonate in China has risen by about 10% this year, and it is expected to rise further in the future driven by overseas giants.
According to Lockwood Lithium, the price increase will help fund the company’s large number of new investment projects to expand global production capacity. These investment projects will ensure that the current and future market for lithium products will continue to be effective, such as the electric vehicle market.
The company had previously announced plans to invest US$140 million in the construction of a lithium carbonate production facility in Chile. It is also expanding its lithium salt plant in Nevada, USA, and its high-purity lithium hydroxide plant in North Carolina.
Regarding price increase reasons, Business Society analyst Li Jianxi said in an interview with this reporter yesterday that the price increase for lithium carbonate was due primarily to a shortage of supply and an imbalance between supply and demand.
“Chile is flooding, South American salt lake is affected by climate impact, and at the same time, ore lithium extraction in the first half of the new production capacity is relatively small, while the demand has grown steadily, coupled with high raw material prices, these are created for the price of lithium carbonate Conditions." Li Jian said.
According to him, weather changes have a great impact on the output of lithium carbonate in Chile. From July to September of last year, Chile was stronger than five times the amount of rain and snow in previous years. It diluted the concentration of salt lake brine, slowed down the concentration of brine in the evaporation pond, and eventually reduced the production efficiency of the two major lithium carbonate giants in the area. In the first few months of this year, Chile launched another flood. The impact on lithium carbonate production cannot be ignored.
In China, lithium carbonate is mainly imported from Chile.
Lithium carbonate import and export data of the Customs show that in February 2012, China’s lithium carbonate imports totaled 1280.20 tons, an increase of 77.98% compared with the previous period, and the total export volume was 357.98 tons, a year-on-year increase of 192.16%. In March, the total imports decreased to 739.20 tons, a decrease of 42.26% from the previous month, and the total export volume was 471.56 tons, an increase of 31.73% compared with the previous period. In April, total imports decreased further to 440.29 tons, a decrease of 40.44% from the previous month, and total exports also decreased to 284.61 tons, a decrease of 39.65% from the previous period.
Business statistics show that yesterday, the domestic average price of lithium carbonate 41600 yuan / ton, compared with the same period last month rose about 3.74%. In Li Jianrong’s view, the increase in prices of overseas giants, coupled with rising raw material costs and reduced imports, are likely to drive domestic prices of lithium products higher.
Guo Jin Securities analysts believe that due to the continuing pattern of tight supply and demand, lithium carbonate prices will rise in the next three months, a certainty. At present, the relevant company's net interest rate is about 10%. If the price rises by 10%, the corresponding net profit will nearly double.
Chili Sauce Processing Line,Red Pepper Sauce Line,Chili Sauce Machine,Hot Sauce Producing Machine,Chili Paste Machines
QINGDAO HK MACHINERY AND EQUIPMENT CO.,LTD , http://www.hk-machinery.com