The winning bid was willing to fork out US$5,955 per dry metric tonne (dmt), up from April’s auction of US$5,650.
Citi released an interesting note on Wednesday, which was generally bullish on the electrification theme. The investment bank noted:
Lithium prices should continue to moderate, but remain higher for longer
Global lithium spot prices have declined around -8% from all-time highs to trade at US$69,000t
Prices remain extremely high relative to miners’ production costs, and relative to average price levels of US$13,000 over the 2017-2021 period
Prices are expected to moderate, averaging US$35,000t by 2025
Bank of America has observed almost a dozen large copper mine projects ramping up production, likely to flip the market into a surplus in the coming quarters.
Analyst believes copper could be better supplied through 2023, which could cap any further spot price upside.
In the near-term, low inventories will likely keep volatility high, but a slowdown in growth should ultimately push prices lower.
CRU has observed a pullback in its fertiliser price index, down 50 pts since late March, from a record high of 390.
A part of this weakness is attributed to weaker seasonal demand, exacerbated by buyers stepping back from record price levels.
On a side note, a Canadian Pacific Railway freight train carrying 43 trains of potash was derailed earlier this week.
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