China’s Path-Setting Lithium Futures Tumble on Trading Debut (1)

China’s first futures for lithium — an essential ingredient for electric-vehicle batteries — had a rocky start in their first day of trading.

Lithium carbonate on the Guangzhou Futures Exchange fell below the base settlement price of 246,000 yuan ($34,263) a ton on Friday, datafrom the bourse showed. Contracts for January delivery plunged to as low as 214,150 yuan, before paring losses to close 13% lower. Those for February to July sank by the first-day limit of 14%. A total of 65,439 lots were traded.

The new contracts may help to provide more transparent lithium pricing, reduce volatility in ...