Lithium Carbonate Prices Dropped by Another 2,000 yuan/mt Today

SHANGHAI, Apr 25 (SMM)  - According to SMM prices, domestic battery-grade lithium carbonate prices continue to drop today, and its current offer range has fallen to 455,000-475,000 yuan/mt, with an average of 465,000 yuan/mt, down 2,000 yuan in a single day, but a narrower drop than in previous trading days.

Domestic battery-grade lithium hydroxide prices fell as well, and the spot offer has dropped to 463,000-477,000 yuan/mt, with the average price at 470,000 yuan/mt, down 1,500 yuan/mt in a single day, a level still higher than lithium carbonate prices.

And lithium hexafluorophosphate, whose prices dropped more and more quickly in the past few todays, extended the losses today, with a daily drop of 25,500 yuan/mt, less than the decrease of 40,000 yuan/mt in the last trading day. The average price stood at 365,000 yuan/mt. The fall was mainly caused by added output from new capacities.

In addition, lithium metal prices also recorded some losses after maintaining stability for 11 consecutive trading days, dropping to 3.1-3.19 million yuan/mt, with the average price at 3.145 million yuan/mt, down 15,750 yuan/mt in a single day.

In terms of lithium carbonate, according to the latest SMM research, the supply is likely to rise this month. On the demand side, although the car enterprises have been resuming the production, the impact of the previous shutdown is still in place amid fermenting COVID, and palpable growth of imports also bring more supplies. Hence the supply-demand pattern may be reversed in the short term with rising supply and falling demand. SMM believes that some manufacturers will restock this week, and market transactions may increase, bringing down the prices slightly.

As for lithium hydroxide, on the demand side, the domestic and overseas lithium hydroxide quotes are moving toward different directions. Overseas demand for lithium hydroxide has been relatively firm. In China, however, some manufacturers have experienced a drop in high-nickel material orders, hence the procurement demand of spots shrank on falling orders, supply under long-term orders and from clients.

In addition, the prices of causticised lithium hydroxide are also challenging the current prices due to constantly falling lithium carbonate prices. The market is expected to see a slight decrease in lithium hydroxide prices as a result of the downward trend in lithium carbonate prices and weakening demand from downstream material plants.