SMM Analysis On China October Lithium Carbonate Production And November Forecast

Published: Nov 12, 2024 11:31

Source: SMM

Save

According to SMM statistics, the total domestic production of lithium carbonate in October still fluctuated at highs, up 4% MoM and up 48% YoY.

According to SMM statistics, the total domestic production of lithium carbonate in October still fluctuated at highs, up 4% MoM and up 48% YoY. By raw material, the total production of lithium carbonate from spodumene in October increased by 17% MoM. The main reason for the increase is the rapid ramp-up of production lines switching from lithium hydroxide to lithium carbonate, along with a boost in orders under tolling agreements for some lithium chemical smelters due to favorable downstream demand. The total production of lithium carbonate from lepidolite in October decreased by 21% MoM, mainly due to the shutdown of a major lithium chemical smelter in Jiangxi, while the production of other lepidolite-based lithium chemical smelters remained stable. Therefore, the shutdown of this major smelter significantly impacted the output of lithium carbonate from lepidolite. The total production of lithium carbonate from salt lakes in October decreased by 3% MoM, affected by weather factors, which slightly reduced the operating rate of lithium chemical smelters in the region, leading to a continued decline in the total production of lithium carbonate from salt lakes. The total production of lithium carbonate from recycling in October increased by 3% MoM, continuing the growth momentum from September. The main reasons for the increase in production are the continuous rise in orders under tolling agreements for waste batteries from a major battery plant and the boost in recycled lithium carbonate production due to favorable downstream demand.

Entering November, downstream production schedules far exceed expectations. Driven by sustained favorable downstream demand, most lithium chemical smelters have increased their production schedules. The total domestic production of lithium carbonate is expected to increase by 5%-7% MoM.

Regarding the current spot market for lithium carbonate, the center of spot transaction prices slightly rebounded in October. In the context of high production sentiment downstream, upstream lithium chemical smelters have a strong sentiment to stand firm on quotes. Considering that the cumulative inventory of lithium carbonate remains at a relatively high level, the rebound in spot prices is limited. It is expected that with the continuous rise in demand, the spot price of lithium carbonate will continue to have an upward trend, accompanied by fluctuating rebounds.

Output

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

Talon Metals’ Tamarack Nickel-Copper-Cobalt Project Completes Public Comment Period for Environmental Review

According to Talon Metals on September 15, the company’s Tamarack nickel-copper-cobalt project in Minnesota, U.S., has completed the 60-day public comment period as part of the state environmental review process. The project is currently under environmental review by the Minnesota Department of Natural Resources. The regulator will next assess the submitted comments and continue advancing the permitting process. Tamarack is one of the more notable U.S. nickel-copper-cobalt sulphide projects under development by Talon Metals. The company said completion of the public comment period marks an important milestone in the environmental approval process and moves the project closer to subsequent permitting and development stages. Although the update did not include new cobalt resource figures, production capacity or a commissioning timeline, the permitting progress remains relevant as the U.S. continues to strengthen domestic critical mineral supply chains and could improve the prospects for future domestic nickel and cobalt production.

2 hours ago

DRC Establishes “DRC-USA Task Force” to Accelerate Strategic Minerals Cooperation with the U.S.

According to Reuters on September 15, the Democratic Republic of Congo has established a “DRC-USA Task Force” to accelerate implementation of its strategic minerals cooperation agreement with the United States and move the partnership from a policy framework toward concrete investments and project execution. As a major global supplier of copper and cobalt, the DRC will use the task force to coordinate progress in critical mineral investment, project development and supply-chain cooperation. DRC Economy Minister Daniel Mukoko Samba said the mechanism is expected to improve the efficiency of implementation between the two sides. In recent years, the U.S. has strengthened cooperation with the DRC in copper, cobalt and other critical minerals through support for mining investment, expanded access to Western markets and regional logistics infrastructure. The creation of a dedicated implementation mechanism could further deepen U.S.-DRC minerals cooperation and potentially influence cobalt trade flows, the international buyer mix and Western capital participation in the DRC.

2 hours ago

20 hours ago

South Korea to Ease Regulations to Foster Urban Mining

South Korea’s Ministry of Climate, Energy and Environment will launch regulatory exemption projects to recover critical minerals from semiconductor process waste, used batteries and end-of-life solar panels. The government plans to test technologies that recover silicon, copper, titanium and tungsten from semiconductor waste such as used silicon and targets, while reviewing regulatory changes to use such byproducts as circular resources rather than waste. Critical mineral recovery from used batteries and end-of-life solar panels will also be included in the demonstrations.

20 hours ago