Lithium Carbonate Prices Rose on Improving Terminal Demand

Lithium: Prices of lithium carbonate rose slightly recently. In terms of supply, the impact of transportation control in Qinghai extended, weighing on the supply of spots. On the demand side, under the expectation that the terminal demand will improve and the lithium price will continue to rise in the future, the downstream battery companies restocked actively the raw materials. The cathode material manufacturers, in light of robust orders as well as low in-plant inventory, were more willing to source lithium salt. Around the end of the month, the market transactions and inquiries were quite active, which offered strong momentum to salt prices in the near future.

The prices of lithium hydroxide also rose slightly recently. On the supply side, due to the previous power cut in Sichuan province and the enduring shortage of mineral materials of some manufacturers, some leading salt manufacturers mainly delivered the delayed long-term orders, with few sources available for the spot market. Only several mid and small-sized manufacturers supplied the spot market. In terms of demand, some battery companies restocked actively on improving terminal demand and constantly rising prices, which also encouraged the cathode material manufacturers to purchase lithium salts. At the same time, considering the restricted transportation of hazardous chemicals during the National Day holiday and in October, the purchase of lithium hydroxide before the festival has been robust. However, due to the low market circulation and the upward trend of lithium carbonate prices, the spot transaction prices of lithium hydroxide continued to advance.   

Cobalt: Recently, the cobalt sulphate prices offered by the manufacturers rose slightly due to rising cost, but the transaction price of cobalt sulphate was relatively stable, and stood mainly between 61,000-62,000 yuan/mt. The demand for cobalt sulphate from the ternary precursor sector has been stable. At present, cobalt sulphate supply in the spot market is relatively sufficient, which, coupled with reduced transactions during the National Day holiday, has kept the transaction prices unchanged.  The demand for Co3O4 is currently stable following the centralised restocking ahead of the week-long holiday, and the manufacturers mainly quoted 245,000-250,000 yuan/mt. The electronics market is still recovering, and the demand for Co3O4 is still not optimistic. Therefore, Co3O4 prices are capped by lacklustre demand and downstream players purchasing on demand. 

NMC cathode materials: The prices of cobalt salt have been rising recently, pushing up the prices of precursors. Encouraged by the hot sales of new models in the fourth quarter, the leading battery companies’ demand for the 5 and 6-series NMC cathode materials rose as well. The production of 5-series NMC cathode material precursor has picked up. The demand in the electronics sector has remained flat.  NMC cathode material prices stabilised at present. The lithium prices continued to rise, cobalt salts stabilised for the moment, while nickel salts prices rose on insufficient capacity and rising nickel metal prices. Manganese prices experienced few changes recently. The prices of NMC cathode materials gain momentum mainly from rising lithium prices. Downstream battery factories have entered the fourth-quarter stocking cycle to prepare for the expected busy production around the end of the year, and the demand for NMC cathode materials from the power sector is expected to demonstrate palpable growth. However, the electronics market is unlikely to improve sharply in the fourth quarter. It is expected that the prices of NMC cathode materials will rise slightly again in October.

Downstream and Terminal: At present, it is the traditional peak season for new energy vehicles, and the new energy subsidy policies in Guangzhou, Beijing, Shenzhen and other places have been enhanced. New models from auto companies such as Li Autom and XPeng are gradually launched; meanwhile, multiple sales promotions are on the market to promote the sales. For example, during the National Day holiday, car companies such as Tesla, XPeng, BYD, and Leapmotor launched multifarious promotion measures such as 0 down payment for car purchases, complimentary decoration services, which keeps the car market animated. It is expected that the production and sales of new energy vehicles will remain at a high level in the future.