SHANGHAI, Mar 29 (SMM) - Prices of lithium carbonate remained on a downward path last week. On the supply side, the operating rates of salt factories were normal, and the inventory continued to accumulate. However, the demand from downstream material plants was weak amid their low operating rates. Therefore, the lithium carbonate market was in a supply surplus. Meanwhile, some salt plants started to undersell either under cost pressure or to promote sales, which drove down the prices of lithium salt. Since the demand will not recover in the short term, while it will take time for the high inventory to be consumed, the oversupply will persist, and the prices of lithium carbonate will maintain a downward trend.
The prices of lithium hydroxide extended the fall last week. In China, the huge price difference between lithium carbonate and lithium hydroxide led to rising output of the latter in the causticising plants, thus more lithium hydroxide produced through causticising were available at lower prices in the spot market. In addition, the weak demand also inhibited transactions of lithium hydroxide at high prices. As a result, mainstream lithium hydroxide prices went down as well. The overseas demand for lithium hydroxide was thriving, but the pressure from lower prices in China still caused overseas prices to slip. It is expected that the prices of lithium hydroxide will continue falling due to poor demand.
