12th Rare Earth Summit
May 27-28, 2021
Hangzhou, Zhejiang, China
11th Aluminum Raw Materials Summit
May 20-21, 2021
Hangzhou, Zhejiang, China
9th Magnesium Summit
April 15-16, 2021
Hangzhou, Zhejiang, China
13th World InBiGeGa Forum
March 25-26, 2021
Hangzhou, Zhejiang, China
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June 13-14, 2019
Changsha, Hunan, China
7th Refractory & Abrasive Materials Summit 2019
May 23-24, 2019
Qingdao, Shandong, China
10th Aluminum Raw Materials Summit
May 16-17, 2019
Zhengzhou, Henan, China
11th Rare Earth Summit
May 9-10, 2019
Qingdao, Shandong, China
8th Magnesium Summit
April 11-12, 2019
Zhuhai, Guangdong, China
12th World InBiGeGa Forum
March 14-15, 2019
Zhuhai, Guangdong, China
6th World Manganese & Selenium Forum
May 21-22, 2018
Hainan Sanya, China
Huaiguo Shen, General Manager of Beijing Chilith New Sources Co., Ltd., Junrong Wang, Vice President of Luxiang Co., Ltd. and General Manager of Ganzizhou Rongda Lithium Co., Ltd., Oliver Chen, China Country Manager of FMC Lithium Division, Yabin Hou, General Manager of Xizang Runheng Minerals Sales Co., Ltd. discussed lithium market with Asian Metal
In recent years, lithium products have gradually become the focus with the new energy concept gaining more attention than previously anticipated. The two giants in the global lithium market, Rockwood and FMC, raised prices in 2011 and 2012. However, the prices of downstream products such as lithium cobalt oxide and ...
Industry executives share opinions on lithium market
----Huaiguo Shen, General Manager of Beijing Chilith New Sources Co., Ltd., Junrong Wang, Vice President of Luxiang Co., Ltd. and General Manager of Ganzizhou Rongda Lithium Co., Ltd., Oliver Chen, China Country Manager of FMC Lithium Division, Yabin Hou, General Manager of Xizang Runheng Minerals Sales Co., Ltd. discussed lithium market with Asian Metal
Huaiguo Shen--General Manager of Beijing Chilith New Sources Co., Ltd.
Asian Metal: From the import and export statistics in recent several years, the net import volume of lithium carbonate is 4,370t and it is 2,888t in 2010 and 2011. In the first three quarters of 2012, China imported 9,965t of lithium carbonate and exported 2,490t at the same time, so the net import is 7,475t. In 2012, the net import volume of lithium carbonate has the tendency to rise. How do you think about the changes in the import and export situation and what is your prediction of the future lithium carbonate import and export situation?
Huaiguo Shen: Affected by natural climate change in 2011, the production of FMC Corporation cut down and the sales volume of the company decreased dramatically to China. In 2011, SQM did not increase sales in China. After economic crisis in 2008, the market share of SQM shrank significantly in Chinese market. In Chinese market, the main suppliers are from domestic market, such as Tianqi Lithium, General Lithium (Haimen) Corp. Xinjiang Haoxin, etc. In 2010, SQM re-entered the Chinese market, but it needed a much longer time to recover their market share. Therefore, there were not many sales volume of SQM in 2010 and 2011.
The increasing import of lithium carbonate is to make up for the falling sales volume of FMC in the Chinese market. In addition, demand in Chinese market is rising quickly, by 10-15% from lithium battery industry. Part of production capacity of lithium battery in South Korea and Japan transfers to China. Why the import volume of lithium carbonate increases in 2012? It is a long shipping period from Chile to China. Supply was short in 2011 and some end-users increased the import volume of lithium carbonate at the end of 2011. However, the goods can only be shipped to China in early 2012. For example, if consumers placed orders for lithium carbonate in December 2011, and the materials were to be shipped to China in March and April or June and July 2012. Therefore, the import volume of lithium carbonate reflected a shortage of supply in 2011, and I predict that the net import volume will reach 9,000t in 2012. Chinese lithium carbonate market is mainly supplied by domestic made producers and the import materials are complementary and I think it is normal for net import volume to be 4,000-6,000t per year.
Asian Metal: You have been an agent of the lithium products of SQM for several years. What has changed in the lithium market in China?
Huaiguo Shen: Chinese lithium market is special and China is one of the most important consuming countries and it is the biggest producing country behind Chile and Argentina. There are many producers in China, leading to the most intense competition in the world. In general, SQM entered Chinese market in 1997, and at that time, lithium carbonate was not used in lithium battery cathode materials industry and lithium carbonate was mainly consumed to glass and ceramics sectors. The price of lithium carbonate increased from RMB10,000/t to RMB60,000/t in 2008 and the price fell to RMB40,000/t at the present time.
During the past several years, the market saw many more suppliers and those suppliers include those who get materials from spodumene, bought from Australia. Main lithium salts producers in China import lithium ore from Australia. Some spodumene owners in Sichuan, including Sichuan Ni&Co turned to import spodumene from Australia, resulting in the rapid development of Talison Lithium. Meanwhile, there are several lithium salts producers who extract lithium from brine in China. Furthermore, considering of the importance of Chinese market, Galaxy established factory in China. From the demand side, we can see that lithium is used in many applications and fields. The trend is that China is the most important producing and consuming country for lithium.
Junrong Wang--Vice President of Luxiang Co., Ltd. and General Manager of Ganzizhou Rongda Lithium Co., Ltd.
Asian Metal: Ganzizhou Rongda Lithium Co., Ltd. has been committed to the development of spodumene in recent years and the annual output of spodumene is 30,000-50,000t. Please tell us about the spodumene mining progress in the next few years.
Junrong Wang: Ganzizhou Rongda Lithium Co., Ltd. was established in 2005. Luxiang Co., Ltd. held 51% shares of Ganzizhou Rongda Lithium Co., Ltd. from September 2009. In 2011, our output of spodumene 5.5%min was more than 30,000t and in the first three quarters of 2012, we produced more than 20,000t. We predict that the output of spodumene in 2012 is the same as that in 2011. At the same time, Luxiang Co., Ltd. plans to acquire the final 49% of Ganzizhou Rongda Lithium Co., Ltd., and after asset restructuring, won Ganzi methyl mine #134, which is the largest spodumene mine in Asia. The total lithium ore reserve is more than 28.99 million tons. We also hope to extend our products to lithium salts.
It will take about 20 years to explore the mining and the annual production capacity of spodumene 5.5% is 200,000t. That is to say, the capacity of spodumene amounts to 20,000t of lithium carbonate. We intend to produce lithium carbonate and lithium hydroxide. At the same time, we will supply our spodumene to clients in Sichuan. We plan to expand the production capacity of spodumene from the current 240,000t, to 1,050,000t in 2014.
Asian Metal: Ganzizhou Rongda Lithium Co., Ltd. entrusts other companies to process lithium hydroxide. Please share with us about your opinion of lithium market and the prediction of the future market.
Junrong Wang: This is or short-term plan and we hope to keep the processing for a long time. We have not set up our lithium salts factory yet, so we choose to send a part of our lithium ore to some factories in Sichuan to process lithium salts. In 2012, the price rise seen in lithium hydroxide is higher than that of lithium carbonate. I think the reason is the shortage of supply of lithium hydroxide. We know that lithium hydroxide output decreases in 2012 compared with that in 2011, so the price rises drastically.
Generally speaking, we hold optimistic attitudes towards the future market in the next three years. From the application of lithium, new energy and new electric car may be the important fields to drive the demand. Power energy storage batteries used to produce the car will be the trend in the long run. On the whole, we have to embrace both the challenges and opportunities.
Oliver Chen--China Country Manager of FMC Lithium Division
Asian Metal: Could you tell us the lithium output of FMC? What is your expectation towards the future market?
Oliver Chen: The lithium output is a little more than 20,000t of FMC and there is some increase output forecast in 2013. We have a new project to expand output and we are growing with the rising demand. Lithium battery applied in EV will become the main power to promote the demand and we forecast that the demand of lithium products will be 180,000-210,000t and 400,000t by 2015 and through 2020. At that time, lithium market will be in short-supply and we are optimistic about the future market in the long run.
Asian Metal: Are there any sales strategies changes of FMC in 2012?
Oliver Chen: We sell products of high added value and we are aware of the importance of Chinese market and we adjust the sales strategy to expand the sales in Chinese market. We plan to expand output in the long term. In the short run, however, supply of our product is tight and our product cannot meet the demand of our clients.
Yabin Hou--General Manager of Xizang Runheng Minerals Sales Co., Ltd.
Asian Metal: Xizang Zhabuye is the representative of lithium producers who gets lithium products from brine. Please shed more light about the situation of your company in recent years.
Yabin Hou: There is a long cycle to extract lithium products from brine and the natural condition of salt lake is poor and we were short of the highly-technical talent pool at first. About eight years later, we gained experience continuously and the initial recruited personnel have become technical experts. In the first half of 2012, we stopped production and resumed production in August. The output is 400tpm from installed production capacity is 7,000tpy (LCE basis).
Asian Metal: How do you think about the recent lithium market condition and what is you viewpoints towards the future market?
Yabin Hou: I think the reason for lithium products to rise in 2012 is the shortage of supply, and I think there is little chance for the rising trend to sustain in the future. If the whole economic situation continues to be bad, lithium salts market cannot be thriving. In addition, demand from the traditional downstream industries like ceramics, glass and so on is weak.
There are three known giants in lithium salts industry and there are also some new comers. I am not optimistic about the future market. Though EV becomes the hot topics, we do not know when EV will be used substantially. Supply in lithium increases fast in recent years, but demand for electronic products such as mobile phones and tablet does not increase dramatically.
Asian Metal: From the import and export statistics in recent several years, the net import volume of lithium carbonate is 4,370t and it is 2,888t in 2010 and 2011. In the first three quarters of 2012, China imported 9,965t of lithium carbonate and exported 2,490t at the same time, so the net import is 7,475t. In 2012, the net import volume of lithium carbonate has the tendency to rise. How do you think about the changes in the import and export situation and what is your prediction of the future lithium carbonate import and export situation?
Huaiguo Shen: Affected by natural climate change in 2011, the production of FMC Corporation cut down and the sales volume of the company decreased dramatically to China. In 2011, SQM did not increase sales in China. After economic crisis in 2008, the market share of SQM shrank significantly in Chinese market. In Chinese market, the main suppliers are from domestic market, such as Tianqi Lithium, General Lithium (Haimen) Corp. Xinjiang Haoxin, etc. In 2010, SQM re-entered the Chinese market, but it needed a much longer time to recover their market share. Therefore, there were not many sales volume of SQM in 2010 and 2011.
The increasing import of lithium carbonate is to make up for the falling sales volume of FMC in the Chinese market. In addition, demand in Chinese market is rising quickly, by 10-15% from lithium battery industry. Part of production capacity of lithium battery in South Korea and Japan transfers to China. Why the import volume of lithium carbonate increases in 2012? It is a long shipping period from Chile to China. Supply was short in 2011 and some end-users increased the import volume of lithium carbonate at the end of 2011. However, the goods can only be shipped to China in early 2012. For example, if consumers placed orders for lithium carbonate in December 2011, and the materials were to be shipped to China in March and April or June and July 2012. Therefore, the import volume of lithium carbonate reflected a shortage of supply in 2011, and I predict that the net import volume will reach 9,000t in 2012. Chinese lithium carbonate market is mainly supplied by domestic made producers and the import materials are complementary and I think it is normal for net import volume to be 4,000-6,000t per year.
Asian Metal: You have been an agent of the lithium products of SQM for several years. What has changed in the lithium market in China?
Huaiguo Shen: Chinese lithium market is special and China is one of the most important consuming countries and it is the biggest producing country behind Chile and Argentina. There are many producers in China, leading to the most intense competition in the world. In general, SQM entered Chinese market in 1997, and at that time, lithium carbonate was not used in lithium battery cathode materials industry and lithium carbonate was mainly consumed to glass and ceramics sectors. The price of lithium carbonate increased from RMB10,000/t to RMB60,000/t in 2008 and the price fell to RMB40,000/t at the present time.
During the past several years, the market saw many more suppliers and those suppliers include those who get materials from spodumene, bought from Australia. Main lithium salts producers in China import lithium ore from Australia. Some spodumene owners in Sichuan, including Sichuan Ni&Co turned to import spodumene from Australia, resulting in the rapid development of Talison Lithium. Meanwhile, there are several lithium salts producers who extract lithium from brine in China. Furthermore, considering of the importance of Chinese market, Galaxy established factory in China. From the demand side, we can see that lithium is used in many applications and fields. The trend is that China is the most important producing and consuming country for lithium.
Junrong Wang--Vice President of Luxiang Co., Ltd. and General Manager of Ganzizhou Rongda Lithium Co., Ltd.
Asian Metal: Ganzizhou Rongda Lithium Co., Ltd. has been committed to the development of spodumene in recent years and the annual output of spodumene is 30,000-50,000t. Please tell us about the spodumene mining progress in the next few years.
Junrong Wang: Ganzizhou Rongda Lithium Co., Ltd. was established in 2005. Luxiang Co., Ltd. held 51% shares of Ganzizhou Rongda Lithium Co., Ltd. from September 2009. In 2011, our output of spodumene 5.5%min was more than 30,000t and in the first three quarters of 2012, we produced more than 20,000t. We predict that the output of spodumene in 2012 is the same as that in 2011. At the same time, Luxiang Co., Ltd. plans to acquire the final 49% of Ganzizhou Rongda Lithium Co., Ltd., and after asset restructuring, won Ganzi methyl mine #134, which is the largest spodumene mine in Asia. The total lithium ore reserve is more than 28.99 million tons. We also hope to extend our products to lithium salts.
It will take about 20 years to explore the mining and the annual production capacity of spodumene 5.5% is 200,000t. That is to say, the capacity of spodumene amounts to 20,000t of lithium carbonate. We intend to produce lithium carbonate and lithium hydroxide. At the same time, we will supply our spodumene to clients in Sichuan. We plan to expand the production capacity of spodumene from the current 240,000t, to 1,050,000t in 2014.
Asian Metal: Ganzizhou Rongda Lithium Co., Ltd. entrusts other companies to process lithium hydroxide. Please share with us about your opinion of lithium market and the prediction of the future market.
Junrong Wang: This is or short-term plan and we hope to keep the processing for a long time. We have not set up our lithium salts factory yet, so we choose to send a part of our lithium ore to some factories in Sichuan to process lithium salts. In 2012, the price rise seen in lithium hydroxide is higher than that of lithium carbonate. I think the reason is the shortage of supply of lithium hydroxide. We know that lithium hydroxide output decreases in 2012 compared with that in 2011, so the price rises drastically.
Generally speaking, we hold optimistic attitudes towards the future market in the next three years. From the application of lithium, new energy and new electric car may be the important fields to drive the demand. Power energy storage batteries used to produce the car will be the trend in the long run. On the whole, we have to embrace both the challenges and opportunities.
Oliver Chen--China Country Manager of FMC Lithium Division
Asian Metal: Could you tell us the lithium output of FMC? What is your expectation towards the future market?
Oliver Chen: The lithium output is a little more than 20,000t of FMC and there is some increase output forecast in 2013. We have a new project to expand output and we are growing with the rising demand. Lithium battery applied in EV will become the main power to promote the demand and we forecast that the demand of lithium products will be 180,000-210,000t and 400,000t by 2015 and through 2020. At that time, lithium market will be in short-supply and we are optimistic about the future market in the long run.
Asian Metal: Are there any sales strategies changes of FMC in 2012?
Oliver Chen: We sell products of high added value and we are aware of the importance of Chinese market and we adjust the sales strategy to expand the sales in Chinese market. We plan to expand output in the long term. In the short run, however, supply of our product is tight and our product cannot meet the demand of our clients.
Yabin Hou--General Manager of Xizang Runheng Minerals Sales Co., Ltd.
Asian Metal: Xizang Zhabuye is the representative of lithium producers who gets lithium products from brine. Please shed more light about the situation of your company in recent years.
Yabin Hou: There is a long cycle to extract lithium products from brine and the natural condition of salt lake is poor and we were short of the highly-technical talent pool at first. About eight years later, we gained experience continuously and the initial recruited personnel have become technical experts. In the first half of 2012, we stopped production and resumed production in August. The output is 400tpm from installed production capacity is 7,000tpy (LCE basis).
Asian Metal: How do you think about the recent lithium market condition and what is you viewpoints towards the future market?
Yabin Hou: I think the reason for lithium products to rise in 2012 is the shortage of supply, and I think there is little chance for the rising trend to sustain in the future. If the whole economic situation continues to be bad, lithium salts market cannot be thriving. In addition, demand from the traditional downstream industries like ceramics, glass and so on is weak.
There are three known giants in lithium salts industry and there are also some new comers. I am not optimistic about the future market. Though EV becomes the hot topics, we do not know when EV will be used substantially. Supply in lithium increases fast in recent years, but demand for electronic products such as mobile phones and tablet does not increase dramatically.