SHANGHAI, Jan 30 (SMM) -
The market witnessed no transactions during the Chinese New Year (CNY) holiday when the logistics services were halted and most market players were suspended for holiday. Lithium salt factories are with relatively heavy inventory pressure pots the holiday, but they still hold the prices firm. The cathode active material factories will be active in making inquiries, reviving the market. Lithium carbonate prices are likely to fall slightly in the near term.
The top-tier lithium hydroxide factories are focused on export businesses at present, with on a few cargoes available for domestic market. The export prices have been stable. The market will recover gradually from the CNY holiday, and lithium hydroxide prices will stabilise in the near term.
The smelters were less active in production ahead of the CNY holiday as the cobalt sulphate market was sluggish. When the logistics services were suspended during the holiday, most smelters were closed as well except for the top-tier integrated precursor companies. It is expected that the output of precursors will recover after downstream battery companies resume the production, which will boost the demand for cobalt sulphate. And the prices of cobalt sulphate will stop falling and then stabilise.
Ternary cathode materials:
Most ternary cathode material factories were off last week for CNY holiday, with no transactions. It is likely that the material factories will start to procure raw materials as their in-plant stocks have almost been depleted. The prices of ternary cathode materials are expected to be stable when downstream demand picks up.
Most LFP factories were closed for routine maintenance during CNY holiday. The market stagnated with few transactions and inquiries. It is expected that LFP factories will start to restock raw materials after the holiday. While the demand is unlikely to revive any time soon, the prices of LFP will fall slightly in the short term.
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