Bullish Sentiment Spread across the Lithium Carbonate Market in August, and the Prices of Lithium Hydroxide Became Higher Supported by Costs

SHANGHAI, Sep 14 (SMM) - The average monthly price of battery-grade lithium carbonate was 478,500 yuan/mt in August, up 2% month-on-month. The prices may stabilise with the end of the pandemic outbreak.

In early August, prices of lithium carbonate rose slightly. The supply still remained tight although the imported lithium carbonate gradually flowed into the market. Moreover, the maintenance of major factories did not end. The demand side showed obvious signs of recovery. In addition to consuming their in-plant inventories, the material factories became more willing to purchase, but they still held a wait-and-see attitude towards the high-priced lithium salts and restocked in a small amount. 

In mid-August, the prices of lithium carbonate still increased slightly. The power rationing was expected to last until the end of August, hence the short-term raw material shortage could not be solved, and many lithium salt factories raised their quotes. In addition, the terminal consumption continued to recover, and some manufacturers increased their restocking in addition to the purchases on rigid demand.

In late August, prices of lithium carbonate rose slightly. The spot supply still remained tight, and the traded prices stood high. Due to the increase in the purchase prices of lithium carbonate and the operating costs, some traders raised their prices. In addition, the power rationing and the restocking period in mid-to-late August also contributed to the rise in lithium prices.

The average monthly price of battery-grade lithium hydroxide stood at 468,934 yuan/mt in August, up 0.3% month-on-month, supported by the high lithium carbonate prices. 

In early August, the prices of lithium hydroxide stabilised. The supply decreased with the alternate maintenance of major factories, and the demand from high-nickel NMC materials still remained poor. As the international situation changed, the growth of lithium hydroxide exports slowed down.

In mid-August, lithium hydroxide prices were unchanged. Some leading manufacturers completed maintenance at the beginning of the month, but with the delay of the production plans of some smelters, the release of new capacity was slower than expected, thus some companies raised their quotes. The transactions in August were mainly based on the buyers’ rigid demand, and the actual transaction prices stayed stable.

In late August, supported by the high prices of lithium carbonate, the prices of lithium hydroxide increased, and the spot prices also grew as the power cut tightened the supply of lithium hydroxide from some manufacturers. However, the demand recovered relatively slowly, and the market mainly witnessed transactions for restocking on rigid demand.