SHANGHAI, Jan 5 (SMM) -  Most lithium salt smelters were worried that lithium carbonate prices could head for further drop. Smelters believe that even dramatic price cuts will do little to change the current situation of extremely poor demand, and are thus considering maintenance or closing early for the upcoming Chinese New Year (CNY).

Cathode active material (CAM) plants held adequate lithium salt that could sustain production through the end of January. Some CAM plants were preparing to take the CNY break in advance. Due to insufficient orders and bearish outlook for the price of lithium carbonate, most CAM plants have postponed or even stopped picking up their orders.

Quotations of traders also continued to drop.

Factors to watch for

The pace of cargo release from salt lake smelters and their offers will significantly affect the short-term price trend of lithium salt.

Now is the critical period for the signing of 2023 long-term contracts between smelters and CAM plants, but the situation is pessimistic as the signing may be postponed until after the CNY.

Some enterprises are planning to factor in the SMM battery-grade lithium carbonate price index for their price settlement.