Lithium ore
In the week ending March 14, lepidolite prices remained steady. Despite a recent increase in lithium carbonate prices leading to firmer pricing by some miners, the slight rise in quotes was met with resistance due to the lack of strong demand and weak downstream procurement for lepidolite. Consequently, it is anticipated that lepidolite prices will continue to be stable for the foreseeable future. In the week ending March 14, spodumene prices increased as lithium carbonate prices rose, driven by strong buyer interest and active procurement. Tight spot availability of spodumene and a bullish futures market have made lithium salt producers more open to higher spot prices. The Pilbara mine in Australia sold its 6% SC at a presale auction for $1,200 for December delivery, a price lower than expected by some lithium salt producers, mildly affecting the spot market sentiment. However, the corresponding lithium salt cost based on the latest auction price of Pilbara is higher than expected lithium salt price for December 2024, given the concerns over a potential oversupply in the market this year. Short-term expectations indicate that spodumene prices may rise in future trades due to profitable margins between production costs and futures market prices.
Lithium carbonate
The recent recovery in lithium carbonate prices is due to previous production losses and environmental restrictions causing a spot market shortage, alongside a demand resurgence and restocking by downstream sectors, resulting in a supply-demand mismatch. Lithium carbonate supply is expected to increase as smelters return to normal and imports arrive. With downstream cathode producers sensitive to high costs, the potential for rising spot prices is likely to be limited.
Lithium hydroxide
For the week ending March 14, lithium hydroxide prices continued to rise, with producers maintaining firm pricing for spot orders while focusing on fulfilling long-term contracts, reflecting a strategy of limited stock release. Recently, demand for high-nickel ternary batteries has increased due to popular vehicle models, boosting interest in battery grade lithium hydroxide. However, with cathode producers having sufficient stock from past purchases, their buying is cautious, resulting in a modest increase in market transactions.
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