After consecutive price rises, Australia lithium producer Pilbara Minerals saw its spot auction for spodumene concentrate on 23 July fetch a lower price than its previous auction, Kallanish reports.

According to market participants, the company sold the SC5.5 cargo on its digital BMW trading platform at $6,188/dry metric tonne, fob Port Hedland. In the previous auction, on 23 June, it got $6,350/dmt – which translated into $7,017/dmt for SC6.0 cif China.

The company is yet to publish the results on its official channel, disclosing details on the size of the cargo. Previous shipments have been of 5,000 dmt.

Last month, Pilbara’s new ceo Dale Henderson said the “exceptional outcome” from the previous auction provided further evidence of the unprecedented demand for battery raw materials across the global lithium-ion supply chain. He added that “contrary to recent suggestions that the market has peaked … demand remains incredibly strong, with a continued healthy outlook for the foreseeable future.”

Commenting on the price drop, lithium consultant at RK Equity, Rodney Hooper, said July maintenance shutdowns in China will limit chemical supply and may have affected the latest auction.

“Making the necessary adjustments to SC6.0 and adding freight, the conversion to a chemical price in China (VAT included and allowing for a converter margin), we’re still looking at around $73,000/t,” he estimates, without further elaborating on which lithium chemical and its grade.