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• Lithium carbonate prices in China continue uptrend amid tight supply and year-end restocking; lithium hydroxide prices driven up by higher lithium carbonate prices. • East Asian seaborne battery-grade lithium prices rise on Chinese strength, tight spot supply. • In Europe and United States, limited availability propels spot lithium carbonate prices upward.
Buyers continued to actively restock battery-grade lithium carbonate amid tight supply, resulting in its price rapidly climbing since the beginning of this week. This led to a wider range of price indications throughout this week in comparison with a week earlier.
Fastmarkets’ price assessment for lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price range exw domestic China was 250,000-270,000 yuan ($39,234-42,372) per tonne on Thursday, up by 20,000-25,000 yuan per tonne from 230,000-245,000 yuan per tonne a week earlier.
“The supply of battery-grade lithium carbonate in China has been squeezed. While consumers may only be able to secure units through their long-term contracts, there is almost none available in the spot market. It’s a seller’s market now, and prices have been sporadic this week,” a Chinese lithium trader said.
A second Chinese lithium trader said: “A major Chinese lithium producer has halted production for the annual maintenance of its factory, and brine production in China’s Qinghai province is low during winter. Both of these factors constrain the supply of battery-grade lithium carbonate in China.”
China’s imports of lithium carbonate in November dropped by 60.92% month on month as a result of logistical disruptions for cargoes originating in South America, which further worsened the supply issue in China.
“The logistical disruptions will persist, which will continue to tighten spot supply of lithium carbonate in China,” a Chinese lithium producer source said.
Strong demand from the lithium iron phosphate (LFP) batteries sector due to an optimistic outlook for such batteries continued to underpin battery-grade lithium carbonate prices in China, market participants told Fastmarkets.
Chinese consumers began to top up their inventories of battery-grade lithium carbonate since the end of November for production during the January 31-February 6 Chinese New Year holiday.
The strong restocking appetite continued to this week and is unlikely to cool down until mid-January, market participants told Fastmarkets.
“We received too many inquiries for battery-grade lithium carbonate this week, but we can’t meet all this demand,” a second Chinese lithium trader said.
Amid the strength of China’s battery-grade lithium carbonate market and tight availability, prices for battery-grade lithium hydroxide also moved up.
Fastmarkets’ assessment of the lithium hydroxide monohydrate, LiOH.H2O 56.5% LiOH min, battery grade, spot price range, exw domestic China was 210,000-220,000 yuan per tonne on Thursday, up by 15,000 yuan per tonne from 195,000-205,000 yuan per tonne a week earlier.
“Some LFP battery producers are purchasing battery-grade lithium hydroxide, and have it processed into battery-grade lithium carbonate, considering battery-grade lithium carbonate is more expensive and is experiencing a major shortage,” a second Chinese lithium producer source said.
A Chinese lithium consumer source concurred, saying: “Lithium producers are pushing up their offers for battery-grade lithium hydroxide amid rising demand since buyers are purchasing them to convert into battery-grade lithium carbonate.”
The second Chinese lithium trader said: “Lithium producers are more willing to produce battery-grade lithium carbonate than lithium hydroxide in the same grade, given the former’s better margin. This tightens the supply of battery-grade lithium hydroxide in the spot market.”
East Asian prices rise Prices for seaborne battery-grade lithium rose on Tuesday amid Chinese strength but have held steady since.
Fastmarkets’ price assessment for lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price was $33.50-35.50 per kg on a cif China, Japan and Korea basis on Thursday, unchanged for a second day. Prices had risen by $1.50 per kg on Tuesday from $32.00-34.00 per kg a day earlier.
Fastmarkets’ assessment for lithium hydroxide monohydrate, LiOH.H2O 56.5% LiOH min, battery grade, spot price was $31-33 per kg on a cif China, Japan and Korea basis on Thursday, also unchanged since Tuesday. The assessment was at $30-32 per kg on Monday.
“The Chinese strength will eventually push up seaborne East Asian lithium prices and prices across the two markets will reach parity, especially amid tight spot supply in the seaborne East Asian market,” a third Chinese lithium producer source said.
Higher lithium carbonate price in Europe, US Battery-grade lithium carbonate spot price in Europe and the US continued to trend upward over the past week amid tight spot supply of carbonate.
Fastmarkets’ assessment of the lithium carbonate 99.5% Li2CO3 min, battery grade, spot price ddp Europe and US was $32.00-34.00 per kg on Thursday, up by $0.50 per kg from $31.50-33.50 per kg a week earlier.
Fastmarkets’ assessment of the lithium hydroxide monohydrate 56.5% LiOH.H2O min, battery grade, spot price ddp Europe and US was at $32.50-33.50 per kg on Thursday, unchanged from a week earlier.