Lithium loses its sparkle in first half of the yea...

Lithium loses its sparkle in first half of the year

Why Lithium Prices are Plunging and What to Expect • Carbon Credits — **Graphic by carbon credits.com**

Oscar J Jeke

Zim Now Reporter

This year’s first half value and revenue review against projection lithium showed a 72% decline ahead of other minerals such as nickel that fell 20%, coal 13% and coke 39 %.

Platinum matte was the major contributor in the period in review.

“Lithium was down 72%, nickel 20%, coal 13% and coke 39%, translating to significant price declines compared to budget forecasts. However year on year price increases were observed for platinum as it formed 6%, rhodium 6%, copper 16%, fluorite 2% and chrome concentrates 4%, these were not enough to offset the negative impact on overall revenue,” said Minerals Marketing Corporation of Zimbabwe’s acting general manager, Nomusa Moyo in her review presentation.

Moyo attributed the decline witnessed in the first half of 2024 to softening global commodity prices and weaker output.

She said that the this year’s output of 1.9 million metric tonnes valued at US$1.5 billion in the first half falls short of the expected 2 million metric tonnes produce, valued at US$2 030 billion, translating to a 6% volume shortfall and 26 percent revenue loss.

However the volume and revenue realised this year surpassed last year’s produce and numbers, pointing to a year on year increase of 25 percent in sales volumes.

Despite the loss in revenue and volume, Lithium still made it to the top three contributors for H1 in terms of value.

Spodumene sales rose, exceeding budgeted targets with 331 826mt sold from the budgeted target of 275 000mt.

Platinum Groups Metals matte and PGMs concentrate were the other two high performers.

PGMs matte account for 31.8 percent of the revenue in the first six months, with 18 844 Mt of the value of US$479 million, while concentrate exports reached 85 407 Mt at a value of US$294 million in the same period.