Lithium miners are experiencing a resurgence in contracted prices, with recent deals fetching over 10% above spot prices, signaling a rebound in demand from battery chemicals manufacturers. Against a backdrop of stabilizing lithium markets following an 80% price decline over the past year, four notable lithium transactions in the past two weeks have been sealed at elevated levels, underscoring a renewed market interest in the essential battery raw material. While spot market prices have lagged behind contracted rates, industry players are emphasizing the need for enhanced pricing transparency and market dynamics discussions.
Notable transactions include Mineral Resources selling spodumene concentrate at $1,300 per tonne, Sigma Lithium Corp securing $1,333 per tonne for a lithium concentrate shipment, and Albemarle selling Western Australian lithium concentrate at around $1,200 per tonne. These transactions highlight the upward pricing trend in the lithium market, with industry participants leveraging private bidding events to determine fair product valuation and foster a sustainable market environment. The recent surge in contracted prices is attributed to factors such as consumers restocking and supply adjustments, with market analysts projecting price stability within the $1,200-$1,300 range in the near term.
While demand conditions are viewed as relatively consistent compared to previous months, the industry anticipates a balanced market outlook in the coming months, driven by supply adjustments and ongoing industry dynamics.