The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch today.
This follows the release of the lithium miner's latest digital auction results.
Pilbara Minerals share price on watch amid strong lithium prices
The Pilbara Minerals share price has fallen heavily this week, along with fellow lithium miners, amid concerns that demand in China could be softening.
However, this doesn't appear to be the case based on the results of the company's latest spodumene concentrate auction, held via its digital Battery Material Exchange (BMX) platform on Wednesday afternoon.
According to the release, a cargo of 5,000dmt spodumene concentrate at a target grade of ~5.5% lithia was presented for sale on the digital platform, with delivery expected from the middle of December.
Pilbara Minerals revealed that it intends to accept the highest bid of US$7,805/dmt (SC5.5, FOB Port Hedland basis), which on a pro rata basis for lithia content and inclusive of freight costs equates to a price of ~US$8,575/dmt (SC6.0, CIF China basis).
This is an increase on the price it received at the last auction in October of US$7,255/dmt, which was the equivalent of ~US$8,000/dmt on an SC6.0 CIF China basis.
As always, the auction terms now require the successful bidder to enter a sales contract within 24 hours. The buyer also needs to pay a 10% deposit by early next week and provide an irrevocable letter of credit from a recognised bank by late November.
Will this boost lithium shares?
While this update appears to demonstrate that demand for lithium remains as strong as ever, it is worth noting that lithium shares such as SQM and Albemarle tumbled on Wall Street despite this news.
This will make for an interesting session for ASX lithium shares today.
