Lithium Carbonate Price Review & Forecast

Published: Mar 22, 2024 22:52

Source: SMM

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Lithium carbonate prices remained stable in the week ending March 21. The improved spot market performance of lithium carbonate led to price adjustments for individual orders by producers. Environmental regulations continued to limit production in smaller firms in Jiangxi. Nonetheless, other lithium salt producers in China are increasing production due to better profitability and completed maintenance. The upcoming arrival of Chilean lithium carbonate shipments to China could potentially increase supply. Cathode makers and downstream businesses are cautiously restocking at low prices, but their increasing ability to absorb costs is supporting lithium carbonate prices. Short-term expectations indicate that spot prices will remain stable.

Lithium ore

Lepidolite prices inched higher in the week ending March 21, driven by rising lithium carbonate prices. Small and medium-sized mines held back cargoes due to losses arising from high mining costs. Non-integrated lithium salt smelters purchased small amounts of lepidolite for essential needs. Transactions in the spot market remained sluggish. Short-term lepidolite prices may still edge up.

The rise in spodumene prices slowed down in the week ending March 21. For mines who outsource spodumene processing business to smelters, their profit margins for lithium carbonate futures contract delivery have shrunk due to a slowdown in futures prices. Inquiries from buyers remained active. Given the tight supply and previous high import costs, spodumene holders are now holding back in hopes of selling at higher prices in the future. With lithium carbonate futures contract prices at elevated levels, smelters are willing to accept higher spodumene prices. Spodumene imports in January and February topped expectations, and the growth was contributed by Australia and mines owned by Chinese companies in Zimbabwe. The gradual recovery of lithium carbonate prices at the end of February has re-ignited smelters and traders’ interest for imported spodumene. With more smelters signing off-take agreements with overseas mines and the capacity of mines in Zimbabwe ramping up rapidly, spodumene imports are on track to pick up considerably in March-April.

Lithium carbonate

Lithium hydroxide

Lithium hydroxide prices increased in the week ending March 21. Recent auctions by mining firms have led to expectations of higher future costs for lithium hydroxide. Manufacturers are holding inventory and enforcing strict pricing, causing higher price quotes. High-nickel battery demand has increased purchases of battery-grade lithium hydroxide, slightly raising the price.

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