CITIC Securities: Imports of Lithium and Nickel Decrease MoM in Dec 2022

CITIC Securities pointed out that in December 2022, the import volume of lithium and nickel raw materials dropped, and the import prices of cobalt-based raw materials continued to decline. In December 2022, China’s imports of lithium carbonate decreased month-on-month, and the stocks held by companies in domestic battery industry chain kept falling. Imports of nickel raw materials declined MoM, which is probably contributed by poor demand from the Chinese battery sector. Imports of cobalt-based raw materials increased significantly in December 2022, and the prices still fluctuated with some declines. The export volume of lithium hydroxide continued to decline in December 2022, while that of cathode materials bounced back. In December 2022, China imported 10,876 mt of lithium carbonate, down 12.4% month-on-month, and the annual import volume was 143,300 mt, up 67.2% year-on-year. Chile exported 18,179 mt of lithium carbonate, up 9.3% from the previous month. The annual export volume was 205,000 mt, up 48% year-on-year. The quantity of lithium concentrate exported from Headland Port to China was 75,600 mt, down 38.3% from the previous month. Since December 2022, the domestic demand for new energy vehicles and power batteries has fallen short of expectations, and the downstream manufacturers are not willing to purchase, hence the imports of lithium products declined month-on-month.