Strong LFP demand underpins lithium carbonate prices

SHANGHAI, Sep 19 (SMM) – Prices of lithium carbonate showed signs of stopping decline and getting stabilised as of Thursday September 19, underpinned by brisk demand for lithium iron phosphate (LFP) from the digital market. 

SMM assessed prices of battery-grade lithium carbonate (99.5%) at 60,000-63,500 yuan/mt as of Thursday September 19, unchanged since September 3, after some three months of decline. Prices of industrial-grade lithium carbonate (99.2%) stood at 50,500-53,500 yuan/mt as of Thursday, flat from Monday September 16, following a decline of 500 yuan/mt during last weekend. 

SMM learned that some downstream LFP producers shifted their demand from industrial-grade lithium carbonate to the more cost-effective battery-grade materials. Producers of lithium carbonate reported improved shipments this week. 

We still see supply pressure on lithium carbonate prices, due to high inventories of raw materials at smelters and uncertainties around output cuts. 

In the cobalt market, the burgeoning 5G sector led to greater acceptance of higher cobalt prices by downstream consumers. Orders for lithium cobalt oxide (LCO) remained brisk even as prices extended increase. 

Little improvement in demand from the new energy vehicle market, however, kept prices of cobalt sulfate in discounts against that of cobalt chloride. 

As of Thursday September 19, SMM assessed prices of LCO with a grade of 60% at 218,000-228,000 yuan/mt, up 3,000 yuan/mt from September 18 and up 11,000 yuan/mt from a week ago. 

Prices of cobalt sulfate grew an average 1,000 yuan/mt from Wednesday to 55,000-59,000 yuan/mt as of September 19, while prices of cobalt chloride advanced 2,000 yuan/mt, standing at 67,000-72,000 yuan/mt.