Lithium carbonate prices to continue rally amid falling inventories

SHANGHAI, Nov 23 (SMM) — Prices of battery-grade lithium carbonate have been climbing steadily recently. Supply of industrial-grade lithium carbonate declined in Qinghai, where suppliers hardly have any inventory at hand and will delay shipments to the end of the month, encouraging them to raise offers to around 39,000-40,000 yuan/mt. Sales of substandard industrial-grade lithium carbonate in Jiangxi have been brisk recently, with the price around 40,000 yuan/mt. As the demand for LFP increases, the price of substandard industrial-grade lithium carbonate is likely to rise.

China lithium carbonate prices

Data source: SMM, E: estimate

Some small and medium-sized producers sold battery-grade lithium hydroxide at levels close to those of industrial-grade lithium hydroxide. In contrast, major lithium hydroxide producers reported stable sales as they are qualified to enter the mainstream high-nickel industry chain and intend to hike offers amid rising lithium carbonate prices. This has intensified market polarisation.

Price polarisation in lithium hydroxide market to last until Q1 2021

Data source: SMM, E: estimate

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