Pilbara Minerals (ASX: PLS) has reported the results of its first lithium spodumene concentrate auction held via its Battery Material Exchange, demonstrating strong demand for spot spodumene concentrates.
The product shipping via Port Headland, Western Australia, fetched up to US$1,250 per tonne FOB for first concentrates on leaving port.
Platts reports the auction ‘spot’ price for the first 10,000-tonne cargo is well more than the US$850 per tonne for 5% minimum content of lithium dioxide CIF being quoted in China, meaning the product attracted a 45% premium.
According to a Platts research note, the higher price for new material indicates strong demand for spot spodumene concentrates.
Pilbara Minerals reports a total of 62 online bids with prices ranging from US$700 to US$1,250 per tonne.
Pilbara is the largest ASX-listed pure-play lithium company, owning 100% of the world’s largest, independent hard-rock lithium operation at Pilgangoora, Western Australia.
The share price has rallied to a new record high every week for the past five weeks, mainly reflecting lithium prices steadily climbing higher amid super cycle-like fundamentals for the battery-making ingredient. On Tuesday, shares rallied 8.57% to a record high of A$2.28 in Sydney.
At A$2.45 a share, the stock last traded up 19% in the past week and 583% over the past 12 months. The company has a market capitalization of A$7.11 billion (US$5.25 billion).
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