Regional COVID Lockdowns and Power Rationing Caused Delays in Lithium Carbonate Delivery, Lithium Hydroxide Prices Rose for Two Consecutive Days

SHANGHAI, Aug 26 (SMM) – The SMM spot prices of domestic industrial-grade lithium carbonate rose further to 468,000-474,000 yuan/mt yesterday, with the average price up 2,500 yuan/mt from the previous day to 471,000 yuan/mt.
Battery-grade lithium carbonate prices also went up, climbing to 482,000-490,000 yuan/mt, with an average price of 486,000 yuan/mt, a single-day increase of 2,000 yuan/mt. 

Lithium carbonate shipments in some areas were disrupted by COVID lockdowns, but producers remained keen on producing. This, coupled with the impact of power rationing, sent the price of lithium carbonate to a high level. However, the power rationing had bigger impact on lithium salt demand than on its supply. Some lithium carbonate smelters held back cargoes, tightening supply in the market.  

The quotations of industrial-grade lithium hydroxide rose to 451,000-463,000 yuan/mt yesterday, with an average price of 457,000 yuan/mt, an increase of 2,000 yuan/mt in a single day. 

The price of battery-grade lithium hydroxide (micro powder) rose to 474,000-486,000 yuan/mt, and that of battery-grade lithium hydroxide (coarse particles)  rose to 466,000-478,000 yuan/mt. The price increase of lithium hydroxide was driven by rising lithium carbonate prices and power rationing-induced output cuts. However, the demand recovery of lithium hydroxide remained slow.  

The spot price of spodumene concentrate (6%, CIF China) gained $30/mt to $4,980-5,180/mt.