Import volume of lithium carbonate hit a new high, increasing inventory pressure in April and May

SHANGHAI, Jun 2 (SMM) – China's import of lithium carbonate was 8,971 mt in April, up 38% month-on-month and 86% year-on-year. Imports totalled 28,112 mt from January to April, a year-on-year increase of 106%. Import from Argentina soared 178% month-on-month to 1,919 mt, and that from Chile rose 23% to 6,845 mt. SMM estimated that lithium carbonate inventory rose 6,153 mt in April, an increase of 184% from the previous month. Therefore, some traders and smelters cleared inventories at lower prices in April.

Lithium carbonate prices have stabilised for two reasons. Firstly, sellers are in no rush to sell as they are relatively optimistic over demand in H2 and products can be stored for a long time. Secondly, downstream producers need to secure raw material supply for expansions in H2 and current lithium prices are acceptable to them. Therefore, the overall transaction prices were largely stable in May. Despite high lithium carbonate inventory, lithium carbonate prices did not fall sharply as lithium hydroxide prices rose amid strong demand. Profit margins of purification plants gradually increased.