Demand is improving, and the price of lithium salt accumulates rising momentum. According to the statistics of Baichuan, the output of lithium carbonate in China this week is expected to be 5220 tons, an increase of 110 tons month on month, and the output of lithium hydroxide is 4116 tons, an increase of 605 tons month on month, mainly due to the completion of overhaul of large factories. Demand: lithium salt inquiry began to be active. Since March, the lower reaches of the Yangtze River Delta have been actively resuming the procurement of new energy, with the resumption of production in the lower reaches of the Yangtze River Delta. At present, the prices of lithium concentrate and lithium mica are rising, and the prices of soda ash, sulfuric acid and other auxiliary materials are also rising. It is expected that the price of lithium salt may usher in a new round of rise in June.
Snowway equity auction far exceeded expectations, with a cost of about 8500 yuan / LCE ton. On Saturday, 54.3% of snowway’s equity was successfully auctioned by Tan Wei in Jingdong for 2 billion yuan, and the auction price far exceeded the market expectation of about 1 billion yuan. Snowway holds the exploration right of delanongba lithium mine, with resource reserves of 24.924 million tons, of which the average grade of lithium oxide is 1.18%, and the resource volume is 293000 tons, equivalent to 724000 tons of LCE. In addition to equity payment, snowway has 1.6 billion liabilities, and the subsequent fixed asset investment is 905 million, corresponding to the cost of 8500 yuan per ton of lithium carbonate.
The competition for resources is intense, focusing on the PLS auction next week and the silver Zabuye auction of Tibet Mineral Development Co.Ltd(000762) later. The exploration right auction shows that the competition for lithium resources in the market has become white hot. Pls will hold its fifth auction on BMX next Tuesday, with an auction quantity of 5000 tons of lithium concentrate. In addition, Tibet Mineral Development Co.Ltd(000762) plans to publicly transfer 100% equity of silver Zabuye lithium, a holding subsidiary, in order to optimize the company’s industrial layout and resource allocation in the future. In 2021, the output of silver Zabuye lithium salt was 9016 tons, with a year-on-year increase of 89.95%.
Sqmq1’s net profit was $796 million, far exceeding expectations. 2022q1sqm achieved a revenue of US $2.02 billion, a year-on-year increase of 282%, and a net profit of US $796 million, a year-on-year increase of 1071%. Among them, the lithium revenue in 2022q1 was US $1.446 billion, a year-on-year increase of 97%, the lithium salt sales volume was 38000 tons, a year-on-year increase of 59%, a month on month increase of 23%, and the average selling price was US $38000 / ton, a year-on-year increase of 572% and a month on month increase of 160%. Sqm expects the annual sales volume to be 140000 tons in 2022, and the global demand for lithium will increase by 30%. The strong demand growth and tight supply will further push up the price.
Focus on: Sinomine Resource Group Co.Ltd(002738) , Tianqi Lithium Corporation(002466) , Chifeng Jilong Gold Mining Co.Ltd(600988) , Lizhong Sitong Light Alloys Group Co.Ltd(300428) .
Risk tip: downstream demand is lower than expected, lithium price fluctuates sharply, and macro policy changes.
