AT A GLANCE: Pilbara Minerals posts big rises in production, sales for Q3

A summary of Australian spodumene concentrate producer Pilbara Minerals' results for the third quarter of 2020, as stated in its operational report on Monday October 12.

In brief

  • Production of spodumene concentrate at the company’s Pilgangoora Lithium-Tantalum project, in Western Australia, increased by more than 80% quarter on quarter to 62,404 dry metric tonnes (dmt) in the July-September quarter.
  • A higher plant utilization rate resulted in lower operating costs averaging $355 per dmt on a cif China basis, the company said.
  • Third-quarter’sales of spodumene concentrate increased by nearly 50% quarter on quarter and in line with guidance provided in the June operational update.
  • Production levels exceed sales in the third quarter, with the company preparing deliveries for contractual customers as of October.
  • The company said sales volumes were up despite persistent weakness in spodumene prices, which was in line with the backdrop of sustained lower pricing across the lithium supply chain more generally.

Key figures for the third quarter (quarter on quarter percentage change)
Production

62,404 dmt, up 80%

Sales
43,630 dmt, up 50%

What to read next
The US aluminium industry is experiencing challenges related to tariffs, which have contributed to higher prices and premiums, raising questions about potential impacts on demand. Alcoa's CEO has noted that sustained high prices could affect the domestic market. While trade agreements might provide some relief, analysts expect premiums to remain elevated in the near term. However, aluminum demand is projected to grow over the long term, supported by the energy transition and clean energy projects. To meet this demand, the industry will need to increase production, restart idle smelters and address factors such as electricity costs and global competition.
Brazil could reach a share of as much as 7 million tonnes per year in China's distillers dried grains (DDG) and distillers dried grains with soluble (DDGS) markets following an agreement between the two countries that allows Brazilian exports, according to the National Union of Corn Ethanol (Unem).
The DRC is set to decide on the future of its cobalt export ban on June 22, potentially extending, modifying or ending the policy. Aimed at boosting local refining and value creation, the ban has left global markets uncertain, with stakeholders calling for clarity as cobalt prices fluctuate and concerns over long-term demand grow.
Fastmarkets' Tina Tong discusses adopting ESG practices for a sustainable ferro-alloys future
The US trade roller coaster ride seems to be flattening, with signs of potential moderation and stability. It appears increasingly likely that our original expectation that the US Trump administration would primarily use the threat of tariffs as a negotiating strategy will be correct. While we do not expect to the US tariff position return to pre-2025 levels, we believe the overall US tariff burden is more likely to settle at around 10-30% globally rather than the elevated rates of 50-100% that seemed possible in recent weeks.
Read Fastmarkets' monthly battery raw materials market update for May 2025, focusing on raw materials including lithium, cobalt, nickel, graphite and more