Benchmark launches new daily lithium carbonate price indicator

Benchmark is pleased to announce the launch of a new daily lithium price as part of its market leading Lithium Price Assessment.

The new price grade – Battery Grade Lithium Carbonate Daily Price Indicator (EXW China) – officially launched on 22 October 2024 and is now available to subscribers.

The launch of this grade is in response to growing demand from lithium ion battery supply chain participants for higher frequency lithium price data, tracking developments in the Chinese domestic market.

The new Daily Price Indicator is assessed by Benchmark using primary data collected directly from active market participants and will only consider spot transactions for battery grade lithium carbonate material. Prices for the indicator must be submitted by 11:59 p.m. (London) to be included in the following day’s indicator.

The daily price is calculated by averaging the mean of prices collected on the previous five working days. This methodology allows the daily price to accurately track EXW China Battery Grade lithium carbonate prices in the time between Benchmark’s IOSCO-assured Lithium Price Assessments, which will continue to be published weekly on Wednesdays.

Utilising the rolling average methodology, as outlined above, allows for accurate price publication in periods of low liquidity of physical transactions, without having to rely heavily on bids and offers, which Benchmark deems as lower reliability than executed trades.

This ensures that Benchmark will continue to publish the prevailing market price for transactions of traded materials in the lithium ion battery supply chain, as part of its long term ethos of providing the most accurate and reflective market pricing for its subscribers. By setting high standards for price data collected on a traded basis and utilising the rolling average methodology, Benchmark subscribers are assured that the daily price indicator is representative of actual market conditions and is not influenced by sentiment.

Daisy Jennings-Gray, Head of Prices at Benchmark said: “As the lithium industry matures, market participants are increasingly interested in tracking price developments at a higher frequency, with the market having experienced notable volatility over shorter time periods throughout 2024.”

The launch comes in response to mounting desire from market participants to track intra-assessment market developments. Growing liquidity of transactions of battery grade lithium carbonate on an EXW China basis has enabled this indicator. However, as the market develops, liquidity is not yet high enough to publish consistent daily prices which are reflective of true transactional data.

As such, Benchmark finds this indicator enables subscribers to track daily developments in the market without compromising the accuracy, reliability, and high reporting standards for transacted material prices. Therefore, this price launch allows subscribers to follow daily changes in carbonate prices, prior to receiving further market commentary in the Lithium Price Assessment each week.

The launch also comes at a time of increasing growth in demand for LFP chemistry cathode material for EVs in China and ESS applications globally, making a daily lithium carbonate price particularly relevant.

In response to the launch, Daniel Fletcher-Manuel, Director of Prices and Data at Benchmark said: “Benchmark has invested heavily in its lithium pricing capability throughout 2024, even as lithium market conditions have weakened. This Daily Lithium Price Indicator provides our subscribers with the industry’s only actionable, daily lithium index, which is strategically designed to mitigate exaggerated sentiment, enabling participants to act with maximum confidence.”

BenchmarkLithium Price Assessment subscribers will now receive the following price grades:

Daily:

Weekly:

Every two weeks (in addition to the above weekly grades):

Benchmark Price Assessments

If you would like to provide feedback, or become a price submitter for the Benchmark Lithium Price Assessment, please contact us at prices@benchmarkminerals.com.

Benchmark publish weekly and monthly price assessments, to the highest IOSCO standards:

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