Lithium Carbonate Price Review and Forecast

Lithium carbonate

In the week of May 20-23, lithium carbonate prices have shown a slight downward trend overall. On the supply side, some small and medium-sized lithium salt plants in Jiangxi have slightly reduced production due to environmental protection checks. However, the production of smelters extracting lithium from spodumene and salt lakes in Qinghai remained relatively stable. Upstream lithium salt companies are still holding firm on prices for spot trades. However, with the recent significant increase in goods available for sale in the market, downstream buyers' bearish sentiment and wait-and-see attitude have strengthened. Some downstream companies still buying spot goods at low prices, other buyers have indicated that their current inventory levels are still high. Additionally, the supply of lithium carbonate in June is expected to increase, and buyers are still in the process of destocking, which has kept spot trades in the market relatively sluggish. Moreover, some downstream companies are also observing the overall industry's production schedule for June to formulate their subsequent procurement strategies. As it is also nearing the end of the month for long-term contract negotiations, most downstream buyers are still in a wait-and-see mode for spot trades recently.

Lithium hydroxide

In the week of May 20-23, lithium hydroxide prices further declined. Some high-nickel cathode material plants have significantly lowered their order expectations for the future. Some cathode material plants, having long-term contracts and sufficient raw material supply, expect a surplus in supply in the future, resulting in minimal purchases of lithium hydroxide. Recently, they have mainly been consuming their own raw material inventory, leading to a sparse transaction. With downstream purchasing and cargo pick-up significantly slowing down, market prices fell.