SHANGHAI, Sep. 8 (SMM) -- Transactions of lithium cobalt oxide at domestic market were relatively brisk, and mainstream offers climbed to around RMB 245,000/mt. However, market was still relatively sluggish from previous years.

Lithium cobalt price increase is mainly pushed up by demand recovery and price increase of tricobalt tetroxide. When entering into September, maker demand for lithium cobalt oxide recovered to certain extent and trading volumes increased from previous month, but large amount purchasing volumes before high consumption period seen in 2009 haven’t occurred at president. Currently, mainstream traded prices of tricobalt tetroxide were no longer below RMB 238,000/mt after Jinchuan Group lifted tricobalt tetroxide prices.

According to results from a survey conducted by SMM, purchasing interest from lithium oxide producers was low, as most producers had already purchased raw materials previously when cobalt salt and tricobalt tetroxide prices were low. According to a lithium dioxide producer in north China, current raw material stocks were ample, and can be consumed for three months.

Most market players told that prices of lithium cobalt dioxide will advance further in September driven by growing demand. SMM believes that room for lithium cobalt oxide prices will be limited due to slow demand recovery.

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