SQM - China's Lithium Prices Plunge To 26-Month Low: How Have Mining Stocks Fared? | Benzinga
China's lithium market has undergone a major downturn, with prices reaching a 26-month low. This decline is largely attributed to an unexpected increase in supply, as evidenced by a trial delivery to the Guangzhou Futures Exchange, a key player in the global battery metal industry.
What Happened: The most actively traded lithium futures for January on the exchange saw a modest 1% increase on Friday, closing the week at 124,050 yuan (approximately $17,202.65) per metric ton. This figure represents a 10% decrease over the week, following a 7% drop the previous week, Reuters Reports.
Thursday marked a significant 7% fall in prices, bringing them to less than half of their value since the inception of trading in July. This sharp decline was triggered by a test delivery for the new contract, which revealed a higher-than-anticipated availability of lithium, surprising market analysts and ...