(Yicai) Dec. 14 -- The Guangzhou Futures Exchange reportedly refuted a rumor claiming the passing rate of its lithium carbonate futures contracts was only 30 percent.

Saying that lithium carbonate futures’ passing rate is only 30 percent is far from the truth, the GFE told Futures Daily.

An online rumor yesterday claimed Qinghai Salt Lake Lanke Lithium Industry’s lithium carbonate failed to meet the GFE’s delivery standards. A media outlet later reported that almost all carbon materials for lithium batteries extracted from salt lakes in China are not up to GFE delivery standards, so the products would need to be discounted by CNY25,000 (USD3,485) per ton or purified.

The rumors and media reports thus caused market concerns, which led to lithium carbonate futures prices traded on the GFE to skyrocket five minutes before the market closed yesterday, ending nearly 11 percent up at CNY108,550 (USD15,325) per ton.

Entities and individuals are prohibited from fabricating and spreading false or misleading information to disrupt the futures and derivatives markets, an insider at the GFE said, citing the futures and derivatives law. The GFE will hold persons accountable by law for fabricating and spreading false news on lithium carbonate futures.

The GFE announced on Dec. 6 the implementation of new delivery standards for lithium carbonate futures, which lowered the maximum content concentration of magnetic substances in battery-grade lithium carbonate to 300 parts per billion from 3,000 ppb to better comply with the quality characteristics of battery-grade lithium carbonate in circulation in the spot market. Moreover, the new standards added requirements for indicators, such as boron and fluorine, and loss on ignition, and adjusted the existing requirements for chlorine, calcium, and potassium.

The LC2401 lithium carbonate futures, the most active lithium carbonate futures contract on the GFE, will end trading on Jan. 15. The delivery date is set for three days after the last trading day.

Editor: Futura Costaglione