SMM Analysis On China July Lithium Concentrates Imports And August Forecast

In July, China imported 549,628 mt of lithium concentrate through customs, equivalent to approximately 52,996 mt of LCE, with a physical tonnage increase of 5.2% MoM. Looking ahead, although there are no major production cuts for overseas mines, considering the reduction in the return of concentrates from integrated lithium salt smelters in Africa and the decrease in spot orders, along with the declining shipment volumes from Australian ports, the import volume of lithium concentrates is expected to decline.
In July 2024, China imported approximately 549,628 mt of lithium concentrate, up 5.2% MoM, with a total LCE equivalent of 52,996 mt. The change in import volume is within the normal fluctuation range.
In July, China imported about 378,654 mt of lithium concentrate from Australia, accounting for 68.9% of the total domestic import volume; around 96,101 mt from Zimbabwe, accounting for 17.5%; approximately 40,321 mt from Nigeria, accounting for 7.3%; around 16,017 mt from Brazil, accounting for 2.9%; approximately 18,300 mt from Canada, accounting for 3.3%; and about 236 mt from Rwanda, accounting for 0.04%. The increase in lithium concentrate imports from Nigeria and Australia was significant, with MoM increases of 22% and 8.4%, respectively. The volume of lithium concentrates imported from Brazil saw a significant decline in July, down about 30% MoM.
Looking ahead, demand side shows pessimistic expectations for subsequent lithium salt prices, thus reducing procurement and stockpiling of lithium concentrate. In August, the volume of concentrates returned by integrated lithium salt smelters in Africa decreased, along with a reduction in spot orders. Coupled with the declining shipment trend from Australian ports, the import volume of lithium concentrates is expected to decrease.