MinRes blames ‘manipulation’ for fall in lithium prices

afr.com:

Mineral Resources says lithium markets are being manipulated to suppress prices in a sector still dominated by battery chemical makers in China.

Falling prices have not deterred Chris Ellison from moving to secure the Bald Hill lithium mine from receivers. 

MinRes has suffered a plunge in lithium prices as it jostles with Gina Rinehart and the world’s lithium giants and hopefuls for more ground in Western Australia to mine the key battery ingredient.

The company said there was nothing fundamentally wrong with demand, and that “market manipulation” was a factor in softer pricing in an analyst call on Wednesday.

“There’s a lot of paper trading in the [lithium] market right now,” MinRes head of investor relations James Bruce said.

Mr Bruce declined to elaborate when asked if prices were being accurately quoted by the metals information providers. He said: “We supply to our customers based on those indices and so it’s a negotiation between us and our customers.”

Mr Bruce’s comments come after the Guangzhou Futures Exchange started offering futures contracts on lithium carbonate supply in July. Many market participants believe the Guangzhou futures have undermined sentiment around lithium prices.

The Chris Ellison-led MinRes reported a near 30 per cent fall in the price of spodumene concentrate in the September quarter, and an equivalent fall in the price of lithium processed into battery chemicals.

The market woes have not deterred its billionaire managing director from moving to secure the Bald Hill lithium mine from receivers and building stakes in up-and-coming lithium explorers.

MinRes received $US1870 ($2939) a tonne for spodumene concentrate from its Mount Marion mine owned in partnership with China’s Ganfeng in the