Lithium Carbonate Price Review and Forecast

Lithium ore

Lepidolite prices remained stable in the week ending April 25. Lepidolite market is slightly oversupplied primarily due to lower-than-expected operating rate at smelters in Jiangxi. Demand for lepidolite has increased slightly, but overall purchasing remains weak. Factors such as smelters operating at reduced capacity and a shift from lepidolite to spodumene due to technological upgrades affected lepidolite demand. Additionally, due to a recent drop in lithium carbonate prices, a slight decrease in lepidolite concentrate prices is expected in the short term.

Spodumene prices were stable in the week ending April 25, with the Albemarle tender closing at 9,733 yuan/mt, up 361 yuan/mt from March. But buyer uncertainty about future lithium carbonate prices has led to low purchasing enthusiasm. Many buyers are adopting a wait-and-see approach or buying on price dips. Major lithium salt producers with long-term contracts and ample inventories face no supply shortages, so lithium ore prices are expected to remain stable in the near term.

Lithium carbonate

Fluctuations in spot lithium carbonate prices have slowed down recently as sellers and buyers are basically in a deadlock. Supply side, smelters are resuming production slowly, while April’s imports should stay at March’s high levels. With smelters still holding back at low prices, market liquidity has declined. Demand side, the current high prices have discouraged most downstream enterprises from purchasing, with procurement driven only by essential needs. Some have completed stocking for upcoming Labour Day holiday. Recovering supply means lithium carbonate prices may have limited upside potential.

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