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SMM Refutes Market Manipulation Claims in Lithium Price Assessment
SMM Information & Technology Co., Ltd., a leading spot market price reporting agency, has issued a formal statement addressing false allegations regarding its lithium carbonate price assessments. The company has detected the circulation of misleading information suggesting its price assessments deviate significantly from fair value and futures prices.
The statement emphasizes that differences between spot and futures prices are normal market phenomena, not evidence of manipulation. According to SMM, spot prices reflect immediate supply-demand conditions, while futures prices incorporate market expectations about future conditions, including capital and carrying costs.
“The principle of ‘convergence at maturity’ means futures prices naturally approach spot prices as contract expiration nears,” the company explained. “During a contract’s lifecycle, price differences, particularly with far-month contracts, are entirely expected under standard market mechanisms.”
To substantiate its position, SMM presented data analysis covering September 2023 through 2025, demonstrating that the spread between SMM’s battery-grade lithium carbonate average price and corresponding GFEX lithium carbonate futures contracts fluctuated within reasonable ranges. Critically, these spreads consistently narrowed as contracts approached expiration, confirming the natural convergence pattern.
The company strongly criticized the methodology of comparing spot assessment prices with certain periods’ futures prices, particularly far-month contracts, calling such comparisons “fundamentally flawed” and potentially misleading to market participants.
SMM noted that the timing of these false claims coincided with risk control measures implemented by the Guangzhou Futures Exchange between November and December 2025. These measures included adjustments to transaction fees and trading limits for lithium carbonate futures contracts, actions the exchange took to maintain market stability.
“The coordinated timing suggests these false allegations aim not to foster professional discussion but to exert improper pressure on our assessment process,” SMM stated. The company categorically denied claims of “illegal benefit-related connections with certain institutions,” calling such accusations groundless.
As a price assessment agency, SMM emphasized its commitment to neutrality and compliance with international standards. The company follows the International Organization of Securities Commissions’ “Principles for Financial Benchmarks” and undergoes regular third-party audits. Internal governance includes strict firewall systems ensuring personnel involved in price assessments do not hold related futures or spot positions.
The lithium market has experienced significant volatility in recent years due to surging demand from electric vehicle batteries and energy storage systems, making reliable price assessments crucial for market stability. Industry analysts note that accurate benchmarks are essential for contract negotiations throughout the supply chain and for derivatives markets to function effectively.
In response to the allegations, SMM has initiated legal proceedings to protect its reputation and preserve market order. The company is collecting evidence related to the infringements and plans to pursue legal action against responsible parties.
“We call on all market participants to enhance their legal awareness and professional judgment, obtain information from authoritative sources, analyze the market rationally, and resist spreading unverified rumors,” the company urged in its statement.
The dispute highlights the complex relationship between spot and futures markets in critical battery materials, where pricing transparency has become increasingly important as the energy transition accelerates globally.
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10 Comments
The differences between spot and futures prices in the lithium market are an interesting dynamic to follow. It’s good that SMM is providing clarity on the legitimate reasons for these divergences. Ensuring price reporting integrity is crucial for market participants.
The differences between spot and futures prices in the lithium market are an important topic to understand. I’m glad SMM is providing clarity and data to address these allegations. Ensuring the integrity of price reporting is vital for market participants.
It’s good to see SMM taking action to clear up any misconceptions around their lithium price assessments. Spot and futures prices can diverge for legitimate market reasons, as they’re reflecting different supply-demand dynamics. Transparency around their methodology is important for maintaining trust in the process.
I’m curious to learn more about how SMM’s lithium price assessments are conducted. What factors do they take into account? How do they ensure the data is representative of the broader market? Transparency around their process would help address any lingering concerns.
Glad to see SMM providing data to back up their stance. Price differences between spot and futures are normal and expected, especially for longer-dated contracts. Allegations of manipulation seem unfounded. It’s important the market has confidence in the integrity of price reporting.
Allegations of market manipulation are serious, so I’m glad SMM is responding forcefully. Transparent and accurate price assessments are vital for the smooth functioning of the lithium market. I hope their legal action and data analysis help put this issue to rest.
It’s encouraging to see SMM taking proactive steps to address these allegations. Maintaining trust in price reporting is crucial for the lithium market, so I’m glad they’re taking legal action to protect their reputation and processes.
While price differences between spot and futures are common, it’s good that SMM is addressing these allegations proactively. Maintaining the credibility of price assessments is vital for the lithium market. I look forward to seeing the details of their analysis and legal response.
It’s good to see SMM taking these false allegations seriously and taking legal action. Maintaining the credibility of commodity price reporting is crucial for the proper functioning of these markets. I’m interested to see the details of their analysis and response.
Interesting to see SMM taking legal action in response to these false claims. Price reporting agencies play a crucial role in commodity markets, so it’s important their integrity is upheld. I hope this helps put the matter to rest and restore confidence.