As prices fell, lithium prices rose

The prices of lithium battery that sales in China have dropped in a second consecutive quarter, and is doubted the early 2018 months prices decline was triggered by "seasonal factors".

Lithium Australian exporters Galaxy resources confirm prices continue to fall, the company announced the three months ended June 30, lithium carbonate prices fell by 18% in China.

According to the Galaxy, this quarter China electric car battery manufacturers are increasingly favored by lithium hydroxide prices fell 4%.

In the three months ended March 31, China's lithium carbonate and lithium hydroxide prices down 10% and 3% respectively.

After prices fell in April report, the Galaxy trying to see it as a seasonal trend, tight supplies will ensure that prices remain strong.

The company said this week, lithium electricity mature markets are seeing pricing "seasonal", the change of the Chinese government subsidies for electric cars caused some lithium products been destocking.

In recent years, lithium battery price is generally higher than other markets in China, and the Galaxy, said the recent decline is lithium and other parts of the world price of signs of "convergence".

The company said in a statement. "in other parts of the world price of sustained growth in the quarter to record levels, shows that the current lithium products market stability and maturity."

Convergence theory can explain why the competitors of lithium product manufacturers in recent weeks has reported the products of China's market prices.

Listed on the Australian securities exchange Orocobre to Europe, North America and southeast Asia, a series of sales products, recently reported that a continuous rise in the price of the fourth quarter of fiscal 2018.

In addition to the geographical location, lithium prices also vary by product grade and ore dressing, Reg Spencer Canaccord Genuity analyst, said investors should be careful to judge the lithium industry for a certain type of situation.

"There are hundreds of different (lithium) products have different specifications, they are all sold at different prices, unfortunately, the stock market is trying to simplify the complicated supply chain, and quickly to develop industry for a number," he said.

Mr. Spencer said that although China's lithium market daily market price or spot prices have fallen, but the price of long-term supply lithium more strong.

"If you look at the contract price of China, they are still on the rise," he said.

Mr. Spencer said that in recent years China's lithium price appeared seasonal changes, as of December 31, tend to be more than six months in the first half of each year.

China lithium price over the past four years after the price has quadrupled fell, including ubs, many analysts earlier in the year predicted lithium price will peak in 2018.

The price of China and Australia's hard rock lithium producers is most relevant, they usually produce rich in lithium spodumene ore concentrate and sell it to China.

Besides Greenbushes mine's largest shareholders of the Galaxy, day qi also to sell China lithium products, a lot of Australia and Pilbara Minerals also plans to some products sold in China.

Shi Yingsu concentrates in Tawana BaldHills MtMarion mining area and production, including Neometals and Mineral Resources Limited.

Mr Spencer said in the three months ended June 30 for operating level of the Galaxy is a good period, during this period the company production and sales of spodumene concentrate more.

The company produces the product is higher than march quarter, concentrate sales higher yields per ton.

"All the performance of the key operating parameters have some significant improvements, it is very good-looking, because march quarter performance was a bit of a disappointment," said Mr Spencer.

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