China’s hydroxide prices fell amid muted spot demand, in contrast to the carbonate trend.
The CIF China, Japan and Korea (CJK) market saw limited trading and scarce demand, while hydroxide prices weakened.
In the US and Europe, market activity remained slow and prices were broadly flat, although European carbonate prices fell back slightly, with declining freight rates from Asia to Europe allowing offer levels to fall.
China lithium carbonate prices
China’s lithium carbonate prices edged up after the holiday, following the volatility on the futures market, but market fundamentals remained weak, sources told Fastmarkets.
The most active 2411 (November) lithium carbonate futures contract on the Guangzhou Futures Exchange (GFEX) opened at 81,500 yuan ($11,516) per tonne on Tuesday October 8 and rose to 84,800 yuan per tonne later that morning. Since then, the contract was on a steady downtrend and closed at 73,700 yuan per tonne on Thursday.
China celebrated its National Day holiday during October 1-7, during which GFEX was closed.
In addition, multiple sources told Fastmarkets that the support from China’s stimulus policies announced before the holiday had worn off, contributing to the downtrend of the futures prices since October 8.
“Spot lithium carbonate prices follow the volatility of the futures market. But the market fundamentals are still weak amid current oversupplies,” a Chinese lithium producer source said.
Despite the volatility, the spot lithium carbonate market was active after the holiday, sources said.
“When futures prices were high on Tuesday morning, lithium producers were actively selling spot units. When futures prices fell since then, consumers started to buy spot lithium carbonate,” a Chinese lithium trader said.
However, multiple sources said consumer demand remained limited and were only buying spot lithium carbonate on a hand-to-mouth basis.
Market participants held cautious attitudes toward near-term lithium price development, as many noted that lithium iron phosphate (LFP) cathode production in China is expected to remain flat month on month in October.
US-based Albemarle held an auction for 100 tonnes of battery-grade lithium carbonate on Wednesday, with the result concluded at 76,250 yuan per tonne, sources told Fastmarkets.
Fastmarkets’ weekly assessment of the lithium carbonate 99.5% Li2CO3 min, battery grade, spot price range exw domestic China was 76,000-80,000 yuan per tonne on Thursday, up by 1,000-2,000 yuan per tonne from 75,000-78,000 yuan per tonne on September 26.
The price was not assessed or published on October 3 due to China’s public holiday.
Lithium hydroxide prices remained under downward pressure amid ongoing muted spot demand after the holiday, while some consumers were still relying mostly on long-term deliveries.
“We are not quoting offers for spot lithium hydroxide. Given the current demand, we can only conclude deals at prices that are below our costs,” a second Chinese lithium producer source said.
A third Chinese lithium producer source also noted muted spot demand from consumers, while the source only concluded deals in very small volumes to consumers for testing purposes.
Fastmarkets’ weekly assessment of the lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price range exw domestic China was 68,000-69,000 yuan per tonne on Thursday, narrowing downward by 1,000 yuan per tonne from 68,000-70,000 yuan per tonne on September 26.
The price was not assessed or published on October 3 due to China’s public holiday.
Spodumene price update
With GFEX prices starting to weaken since Tuesday, spodumene prices also faced downward pressure.
Fastmarkets assessed the spodumene min 6% Li2O, spot price, cif China at $780-800 per tonne on Thursday, narrowing downward by $20 per tonne from $780-820 per tonne a day earlier, and down by $20 per tonne from $800-820 per tonne a week earlier.
“After GFEX prices started to weaken, spodumene buyers became more cautious. Since many of them buy spodumene and have it produced into carbonate to sell into GFEX, the spodumene prices they are willing to pay are directly linked to the performance of GFEX prices. Due to the pressure, spodumene offer prices also show softness accordingly,” a second Chinese trader said.
As a result, several sources observed that offer prices of spodumene from miners were trending lower, although concluded deals were limited.
CJK demand
Spot liquidity remained low over the past week in the CIF CJK market, leading to stable lithium carbonate prices, while lithium hydroxide prices edged down.
In addition to China’s public holiday, South Korea also celebrated its public holiday on October 9, contributing to a quiet spot market.
“There’s no demand for lithium carbonate. Some Japanese and Korean consumers are still using their inventories. It may not be until the first quarter of next year that they can finally finish their inventories,” an international lithium producer source said.
“Even as a lithium producer, I couldn’t give an indication of tradable price levels for hydroxide because we have only been honoring long-term orders and haven’t even received any inquiries for spot orders after the holiday,” a fourth Chinese lithium producer source said.
Amid weak spot demand, multiple market participants said there was no buying interest in lithium hydroxide if the prices are above $10 per kg.
Fastmarkets’ daily price assessment of the lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was $10.70-11.30 per kg on Thursday, unchanged since September 30.
And Fastmarkets’ daily price assessment of the lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea was $9.00-10.00 per kg on Thursday, unchanged since October 8, but narrowing downward by $0.55 per kg from $9.00-10.55 per kg a week earlier.
Europe market mixed
The European market was mixed in the week to Thursday, with lithium carbonate prices dipping and lithium hydroxide prices remaining steady.
Consumer demand in Asia was slow enough for producers to look to Europe to sell volumes, and lower freight rates to the continent from Asia meant exporting was more competitive than it has been over the last few months.
Freight rates from Shanghai to Rotterdam have been falling, according to Drewry’s World Container Index. Prices peaked in July around $8,300 per 40 ft container but have fallen to just under $3,600 per 40 ft container this week.
But European demand was still slow, and there were no reports of any supply shortages in the region, according to market participants, so the lower offers in Europe for lithium carbonate did not cause an uptick in sales.
Fastmarkets’ weekly assessment of the lithium carbonate 99% Li2CO3 min, technical and industrial grades, spot price ddp Europe was down at $11.00-11.70 per kg on Thursday, compared with $11.00-12.20 per kg a week earlier.
Fastmarkets’ weekly assessment of the lithium carbonate 99.5% Li2CO3 min, battery grade, spot price ddp Europe was also down, at $11.80-13.00 per kg on Thursday, compared with $12.00-13.00 per kg a week earlier.
Fastmarkets’ weekly assessment of the lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, technical and industrial grades, spot price ddp Europe was $10-11 per kg on Thursday, unchanged since September 19.
And Fastmarkets’ weekly assessment of the lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price ddp Europe was $10.00-11.80 per kg on Thursday, also unchanged since September 19.
United States lithium spot market
Prices for lithium in the spot market in the US were unchanged over the past week.
Fastmarkets’ weekly assessment of the lithium carbonate 99% Li2CO3 min, technical and industrial grades, spot price ddp US and Canada was $12.00-13.20 per kg on Thursday, unchanged since September 26.
Fastmarkets’ weekly assessment of the lithium carbonate 99.5% Li2CO3 min, battery grade, spot price ddp US and Canada was also unchanged week on week, at $13.00-14.00 per kg on Thursday.
A small deal for battery-grade lithium carbonate was reported within the existing range but was discarded because it was below the required minimum tonnage per Fastmarkets’ methodology.
Fastmarkets’ weekly assessment of the lithium hydroxide monohydrate LiOH.H2O, 56.5% LiOH min, technical and industrial grades, spot price ddp US and Canada was at $10.50-12.00 per kg on Thursday, unchanged since September 19.
Fastmarkets’ weekly assessment of the lithium hydroxide monohydrate LiOH.H2O, 56.5% LiOH min, battery grade, spot price ddp US and Canada was also stable week on week, at $11.00-12.80 per kg on Thursday.
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