Lithium Carbonate Prices to Rise in July as Growing Demand May Reverse the Market from Supply Surplus to Deficit

SHANGHAI, July 12 (SMM) – The Chinese lithium carbonate market saw a supply surplus of 2,940 mt in June. China’s lithium carbonate output stood at 31,734 mt in June, up 9% MoM. The new capacity of many smelters ramped up last month. Driven by the rebound of lithium prices, the output of smelters who use scrap increased significantly. However, some smelters were affected by ore shortages and the overhaul of production lines. In July, the new capacity will continue to release additional output, and the raw material problems of some smelters have eased slightly. However, some major smelters started mid-year maintenance. As such, the market supply may be largely stable. SMM estimates that the domestic lithium carbonate market will reverse into a supply deficit of 2,692 mt in July.