Lithium Ore

Lepidolite prices rose slightly in the week ending April 3, driven by growing demand and rising lithium carbonate prices. Jiangxi's smaller lithium salt factories re-opened after environmental concerns were gradually addressed, boosting lepidolite demand. The market sees very few high-grade lepidolite transactions (grade>2.0%) amid a domestic supply shortage, largely because miners are holding back, anticipating further price gains soon.

Spodumene prices steadily climbed in the week ending April 3. International miners are keen on maintaining high prices, with off-take deals nearing $1,100/mt. Despite downstream firms pushing back against these rising costs, miners with significant cash reserves maintain their pricing leverage. Domestic spodumene transaction costs edged up slightly before April 3. Major lithium salt producers, holding ample stockpiles, show limited interest in high-priced spot purchases. We forecast gentle rise in lithium ore prices in the near future.

Lithium carbonate

Lithium carbonate prices increased in the week ending April 3. Previously, a minor price drop led lithium salt firms to hold back sales, resulting in reduced market liquidity. Environmental regulations and a scarcity of lepidolite concentrate are pressuring small and medium-sized lithium salt businesses in Yichun, Jiangxi, challenging their near-term production recovery. After the recent lithium carbonate price rise, most downstream players, like cathode material producers, are still buying only as needed. Those with critically low inventories are reluctantly accepting the price rebound. Presently, the spot market supply and demand are basically in a balance, which may keep lithium carbonate prices stable.

Lithium hydroxide

Lithium hydroxide prices increased slightly in the week ending April 3 due to higher end-user demand and full production among manufacturers. Lithium salt producers are slowly rebuilding inventories. The recent rise in lithium carbonate prices has led lithium hydroxide sellers to keep prices firm with generally higher quotations. Cathode producers are keeping inventories low, purchasing only to meet immediate needs.

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