Lithium Carbonate Price Review and Forecast

Lithium carbonate

In the week of May 13-16, lithium carbonate prices continued their downward trend. On the supply side, due to the time cycles involved in the procurement, transportation, and smelting of raw materials, the production costs of lithium salt plants are difficult to reduce in the short term along with the prices of lithium salts. Therefore, most lithium salt plants still have a certain sentiment to support the market price. Some lithium salt production enterprises, although relatively conservative in terms of spot prices, have slightly lowered their quotations along with market sentiment, but it is still difficult to negotiate suitable prices with downstream buyers. Some downstream cathode material enterprises have started to make small spot purchases as prices dipped, mostly buying at low prices from traders who held stocks earlier. The market trading volume has increased, but the focus of transaction prices has slightly declined. However, some downstream enterprises, due to sufficient lithium carbonate inventory, increased customer-supplied raw material, and stable long-term agreements, currently have no willingness to replenish spot stocks. Lithium carbonate prices may slightly decline in the short term.

Lithium hydroxide

In the week of May 13-16, lithium hydroxide prices declined. Recently, the lithium hydroxide market has been generally sluggish, continuing the sluggish trend since after the holiday. Although the frequency of inquiries in the market has increased, actual transactions remain scarce. From the supply side, current lithium hydroxide production remains stable overall. However, on the demand side, some high-nickel enterprises have faced significant order cuts from downstream, leading to a rebound in their inventory levels. Additionally, with expectations of weakening prices for battery-grade lithium hydroxide and lithium carbonate in the future, there is resistance to high-priced battery-grade lithium hydroxide. Meanwhile, some manufacturers' sentiment to hold prices firm weakened, further pushing down the market prices.

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