Lithium Carbonate Prices May Rise Further in September Driven by Demand

SHANGHAI, Sep 14 (SMM) - In August, the lithium carbonate supply was in deficit of 2,718 mt. China’s lithium carbonate output stood at around 29,906 mt in August, down 1% MoM. In August, the power rationing and the raw material shortage hindered the production of manufacturers in Sichuan province, thus the supply still remained tight. In addition, the new capacity of some enterprises was not fully released. Although the pandemic situation restrained the transportation in Qinghai province, salt lake production was normal. Both supply and demand decreased, but the pandemic outbreak in Qinghai led to fewer spots available in the market and faster price increases. In September, with the lift of the power cuts, the production of lithium carbonate producers will gradually resume. Meanwhile, the new production capacity of some manufacturers will ramp up, and the overall output may increase month-on-month. China’s lithium carbonate output in September will be 34,162 Mt, Up 14% Mom.