As Lithium Prices Stagnate at Year-End 2011, Lithium Demand Recovers, so TRU's Supply-Demand and Price Forecast Affirmed: No Change in Outlook 2020

TORONTO, Jan. 17, 2012 /PRNewswire/ -- Lithium consultants TRU Group Inc says its earlier lithium price forecast for 2011 has been affirmed. On reviewing price trends TRU found that prices stagnated in 2011 despite reasonable growth in global demand for lithium chemicals. In its January 2011 presentation, president Edward R Anderson had said, "Lithium carbonate prices came down to below $4500 per t in 2010 and in our forecast will remain around this level for some time."

In fact the new data shows that the average price of lithium carbonate for 2011 was unchanged over 2010 at US$4,300 t and there was little sign of upward pressure entering 2012.

Basic lithium chemical prices are being kept in check mainly by over-supply - a situation which TRU says will be exacerbated through 2020 as a number of new pipeline projects come on stream and the existing dominating low cost South American producers SQM, FMC and Rockwood (Chemetall-SCL) expand. Mr. Anderson said: "It is pretty difficult for any producer, large or small, to increase prices in the current or projected environment. Customers are clearly resisting price increases now and will likely continue to do so. Those producers attempting to raise prices risk losing customers to competitors." Now in January 2012 there is stronger evidence than ever that the lithium industry will experience stable prices long term.

TRU Group Inc - trugroup.com - are technical engineering consultants with a strong capability in lithium project development. The firm is a world leader in lithium resource evaluation, salar exploitation, brine and mineral lithium extraction processing technologies. In 2011 TRU completed several feasibility studies for some of the most challenging lithium developments. The firm also undertook a comprehensive assessment of the plant-by-plant profitability of the big-3 lithium producers - all basic, intermediate and derivative lithium operations. TRU has evaluated and modeled most of the known existing lithium properties and advised a number of players on a wide variety of lithium resource, engineering, process, business and investment issues.

CONTACT:
Edward R Anderson,
President & CEO
TRU Group Inc
Cell: 1-520-2297836
http://trugroup.com

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SOURCE TRU Group Inc