Weekly Lithium Price Review and Forecast

SHANGHAI, Feb 13 (SMM) - Lithium carbonate

Prices of lithium carbonate fell at a slower pace last week. The salt plants generally held prices firm, and resumed the delivery of long-term orders. However, uncertain about the downstream demand recovery and disturbed by their high lithium salt inventory, salt plants cut their prices slowly to promote the sales, and a few trades were made in the spot market. Cathode active material plants, who focused on destocking and some of whom still maintained low operating rates, were unlikely to have purchasing demand in the short term. Some salt factories and cathode active material plants were still under negotiations over the details of long-term orders, and the market transactions were poor even when mainstream manufacturers lowered their offers. It is thus expected that lithium carbonate prices will continue to decline slightly.

Lithium hydroxide

The lithium hydroxide prices dropped last week. Top-tier manufacturers mainly concentrated on export orders while also delivering a small number of domestic orders. On the one hand, the export prices of lithium hydroxide contracted due to weaker demand overseas; on the other hand, the domestic lithium hydroxide prices also kept falling amid sluggish demand. Second-tier manufacturers mainly produced to meet domestic demand, and their offers continued to weaken due to soft demand. The uncertainty about the demand recovery, together with the falling lithium carbonate prices, will pressure the lithium hydroxide prices to decline further but at a slower pace thanks to the support from overseas prices.