Lithium prices in China, CJK extend weakness amid ongoing weak fundamentals

Lithium prices in the CIF China, Japan and Korea (CJK) market also remained under downward pressure over the week amid persistently thin demand.

China

Multiple sources noted that the consumers were more active in sending out enquiries for battery-grade lithium carbonate over the recent week.

“The enquiries for battery-grade lithium carbonate are more active than in previous weeks. On one hand, the prices are already low and friendly for the consumers, on the other, some consumers may also need to replenish their stocks,” a Chinese lithium producer source said.

Despite the restocking activities, which were not on a large scale, the demand for carbonate in general remained weak in an oversupplied market.

“The futures prices are still weak although nothing special has happened in the market, indicating weak market fundamentals,” a Chinese lithium trader said.

The 2408 lithium carbonate futures on Guangzhou Futures Exchange (GFEX) closed at 85,450 yuan ($11,930) per tonne on Thursday, down by 700 yuan per tonne from the closing price at 86,150 yuan per tonne a week earlier and down by 3,300 yuan per tonne from the peak of the recent week at 88,750 yuan per tonne on Monday July 22.

Fastmarkets’ weekly assessment of lithium carbonate 99.5% Li2CO3 min, battery grade, spot price range exw domestic China was 83,000-85,000 yuan per tonne on Thursday, down by 2,000 yuan per tonne from 84,000-87,000 yuan per tonne a week earlier.

The lithium hydroxide market remained quiet amid muted demand due to sluggish nickel cobalt manganese (NCM) battery sector.

“The NCM sector is so sluggish, and I haven’t seen any signs of revival of this market. Let’s see if it will have any improvement in the third or fourth quarter,” a second Chinese lithium producer source said.

A Chinese cathode producer source said, “the demand for hydroxide from the NCM sector is at maximum 20,000 tonnes per month in China, while the hydroxide supply is approximately 60,000 tonnes per month.”

Fastmarkets’ weekly assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price range exw domestic China 77,000-83,000 yuan per tonne on Thursday, narrowing down by 2,000 yuan per tonne from 77,000-85,000 yuan per tonne a week earlier.

CIF CJK

Lithium prices in the CIF CJK market on the downtrend amid ongoing weak demand and softness in China’s domestic market.

“There are a lot of sellers of lithium hydroxide but no buyers,” a second Chinese lithium trader said.

The second Chinese lithium producer source said, “the major South Korean battery makers do not have any appetite for spot lithium hydroxide.”

A South Korean consumer told Fastmarkets that their demand for hydroxide was super weak and had not requested any quotation on spot hydroxide recently.

“The orders for lithium carbonate have been very thin recently,” a third Chinese lithium producer source noted.

Fastmarkets’ daily assessment of lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea was $12.00-12.50 per kg on Thursday, narrowing down by $0.30 per kg from $12.00-12.80 per kg a day earlier, and down by $0.30-0.50 per kg from $12.50-12.80 per kg a week earlier.

Fastmarkets’ daily assessment of lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea $11.00-12.90 per kg on Thursday, unchanged from a day earlier but down by $0.10-0.20 per kg from $11.20-13.00 per kg a week earlier.

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