However, since the initial uplift to the week, the overall market has been quiet due to a number of regional holidays and the annual London Metal Exchange Week in London.
In China, participants are out of the market due to the Golden Week celebrations from October 1-7, while South Korea held a public holiday on October 3. As a result, the GFEX has been closed since September 30 and will not resume trading until October 8.
This overall lack of activity within the market also resulted in other regions experiencing limited trading, with prices in Europe and the US remaining stable overall.
CIF CJK
The uptick in GFEX lithium carbonate prices led to an increase in lithium carbonate prices in the CJK market, according to sources, with sellers adjusting their offer levels in line with the Chinese bourse.
The 2411 (November) contract on the GFEX closed at 79,750 yuan per tonne on Monday September 30, up by nearly 4% from the previous day, and from 76,950 yuan per tonne on September 27.
Participants told Fastmarkets that the increase in prices was largely driven by improved sentiment following the announcement of economic stimulus measures in China, which are supportive for lithium demand.
The uptick in the GFEX, paired with this renewed sense of optimism in the market caused many participants to adjust their view of lithium carbonate prices, with many in China now unwilling to transact below $10.70 per kg on a CIF basis.
Fastmarkets’ daily price assessment of lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was $10.70-11.30 per kg on Thursday October 3, unchanged from a day earlier but narrowing upward by $0.70 per kg from $10.00-11.30 per kg a week earlier.
Despite the uptick in lithium carbonate prices, there was no reaction was in the hydroxide market. Participants remained bearish due to the persistent oversupply of this product and soft overall demand.
“I think it would take something very significant to see any upward trend in hydroxide prices; the fundamentals are different to carbonate,” one trader told Fastmarkets on the sidelines of LME Week.
Fastmarkets’ daily price assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea was $9.00-10.55 per kg on Thursday, unchanged on the previous day and the previous week.
Spodumene
The increase in GFEX and lithium carbonate prices also had a knock-on effect in the spodumene market during the week to Thursday, with prices rising amid higher offers and bullish sentiment.
Fastmarkets’ assessed the spodumene, 6% Li2O min, spot price, cif China at $800-820 per tonne on Thursday, unchanged from the previous day but up from $770-802.86 per tonne one week prior.
Sources said both bids and offers have been steadily rising since late last week with spodumene producers and traders looking to capitalize on the renewed optimism, but a gap remains between the two that is keeping sales volumes low.
“It’s tough to know how supported the most recent increase in spodumene is; it will depend what happens when China returns,” a second trader told Fastmarkets.
Spodumene market participants were mostly focused on the announcement that the Chicago Mercantile Exchange (CME) would be launching a new cash-settled futures contract for spodumene in late October, subject to regulatory approval.
The spodumene cif China futures contract is linked to Fastmarkets’ spodumene min 6% Li2O, cif China price assessment and arrives amid growing liquidity and complexity in the lithium market. Learn more with our FAQs.
European lithium prices
Spot lithium carbonate and hydroxide prices were flat during the week to Thursday for both technical grade and battery grade.
Muted activity as a result of many market participants attending LME Week kept prices steady.
Some sources said the increase in European lithium carbonate prices during the previous week was due to a slight reduction in China’s carbonate inventories, which buoyed market sentiment this week.
But overall market demand remains slow and the gap between bids and offers remains wide, a European distributor said.
Fastmarkets’ weekly assessment of lithium carbonate 99% Li2CO3 min, technical and industrial grades, spot price ddp Europe was unchanged at $11.00-12.20 per kg on Thursday.
Fastmarkets’ weekly assessment of lithium carbonate 99.5% Li2CO3 min, battery grade, spot price ddp Europe was also unchanged at $12.00-13.00 per kg on Thursday.
Fastmarkets’ weekly assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, technical and industrial grades, spot price ddp Europe was flat week on week at $10.00-11.00 per kg on Thursday.
Fastmarkets’ weekly assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price ddp Europe was also flat at $10.00-11.80 per kg on Thursday, also unchanged from a week earlier.
US lithium prices
Spot lithium prices in the US were stable across the board during the week to Thursday.
Market activity was limited, keeping the premium unchanged, according to one market participant.
Fastmarkets’ weekly assessment of lithium carbonate 99% Li2CO3 min, technical and industrial grades, spot price ddp US and Canada was at $12.00-13.20 per kg on Thursday, unchanged from the previous week.
Fastmarkets’ weekly assessment of lithium carbonate 99.5% Li2CO3 min, battery grade, spot price ddp US and Canada was $13.00-14.00 per kg on Thursday, also unchanged week on week.
Fastmarkets’ weekly assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, technical and industrial grades, spot price ddp US and Canada held at $10.50-12 per kg on Thursday.
Fastmarkets’ weekly assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price ddp US and Canada was also flat from the previous week at $11.00-12.80 per kg on Thursday.
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