Both Lithium Carbonate and Hydroxide Prices Remained Stable Last Week

SHANGHAI, Jul 4 (SMM) - Lithium carbonate prices were stable last week with transactions mainly in the form of long-term orders, and some buyers restocked for the production in July and August. On the supply side, the production of the brines lakes stabilised in the summer and new production lines were ramping up the production, hence the output increased steadily. On the demand side, seasonal low in the electronics and e-bike markets lowered the demand for LCO and LMO. However, as the terminal resumed the production and the new capacities ramped up the production after the pandemic, the demand for LFP is still increasing. Therefore the demand side of lithium carbonate was relatively stable last week, with an overall increase of 13% in June. At present, the upstream manufacturers are firm to the prices while LFP manufacturers are bearish on lithium carbonate prices, resulting in an intensive tug-of-war.

Prices of lithium hydroxide were stable last week. The prices of lithium hydroxide were high, and the downstream mainly purchased on rigid demand without strong purchasing willingness. Meanwhile, orders from high-nickel NMC materials failed to post a strong growth, hence the prices remained stable. Looking ahead, due to the stabilisation of lithium carbonate prices and the slow recovery of the NMC materials market, the prices of lithium hydroxide will stay stable as well.