SHANGHAI, Mar 16 (SMM) – Output fell in February as a result of raw material shortage, energy constraints, policy restrictions, and low temperature. Demand weakened, but remained at a relatively high level. As lithium salt plants expanded and resumed production significantly in March, output is expected to rebound sharply, which may ease the current tight supply situation. In February, lithium carbonate inventory at Chinese lithium salt plants was 3,220 mt, while that at downstream battery material plants was 27,179 mt, up 1.6% from the previous month.

On the demand side, cathode material producers reduced output significantly in February due to CNY, but gradually resumed normal production in March. Demand for lithium carbonate remained high, but did not increase. Increased supply may cause lithium carbonate price to stop rising.