Lithium Carbonate Price Review & Forecast

Lithium carbonate

In the week ending February 29, lithium carbonate prices rebounded. Before the Spring Festival, production cuts and halts by lithium ore and recycling firms due to losses, and routine maintenance by some lithium salt companies, lowered output. With several lithium salt producers still not at full capacity, domestic lithium salt operating rates are low. An expected 23% MoM drop in domestic lithium carbonate production to roughly 32,000 mt suggests a forthcoming dip in supply from production. Anticipating a pickup in demand, some lithium salt firms are maintaining firm spot sale pricing strategies for lithium carbonate, expecting market purchases to rise. Environmental disturbances have unsettled the market, casting doubt on lithium salt production and supply. Feedback from cathode and other downstream firms indicates resistance to passing on increased lithium carbonate costs to customers, leading to a lack of
urgency for large restocking purchases. Instead, they're making essential buys, driven by order variability, to keep raw material inventories at practical levels. It's important to monitor the production recovery of lithium salt companies and the purchasing sentiment of cathode and other downstream firms. Until supply side issues are fully addressed, lithium salt businesses are expected to maintain firm spot pricing practices.

Lithium hydroxide

For the week ending February 29, lithium hydroxide prices experienced a minor rise. Climbing lithium carbonate prices and low lithium hydroxide inventories have fostered a robust price support outlook among several smelters. Additionally, causticizing firms have seen a marked uptick in production and shipping expenses amid inventory depletion and a sharp hike in industrial-grade lithium carbonate prices, prompting smelters to generally raise their quotes. As prices continue to climb, some cathode material manufacturers are engaging more actively in making inquiries and purchases, leading to increased market activity and a slight uptick in prices.

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