Short-Term Lithium Carbonate And Lithium Hydroxide Prices To Hold Steady, With Little Downside Room

During the week to January 18, lithium carbonate prices stayed stable. Supply side: Upcoming Spring Festival maintenance may cut February's lithium carbonate output by 23%. Lithium ore buyers remain unprofitable. Higher futures prices than spot allow for hedging to secure sale prices. Short-term, lithium salt firms feel no rush to sell, keeping prices firm for sporadic sales. Demand side: There's little interest in buying high-priced spot lithium carbonate. Factoring in reduced Spring Festival orders, halted logistics, and holidays, some cathode firms moved February orders to January to produce and stockpile. This suggests weaker February demand and reluctance to accept high-priced lithium carbonate after fulfilling current production from long-term contracts. Overall, downstream lithium battery firms are destocking, with little short-term demand to boost spot prices. Yet, expected supply cuts and firm pricing by lithium salt companies may prevent major price falls, likely keeping lithium carbonate spot prices weakly stable.
During the week to January 18, lithium hydroxide prices stabilized. Prices of lithium hydroxide remain below lithium carbonate. Despite spodumene's price nearing lithium salts due to new pricing mechanisms, a cost and sale price gap for lithium salts persists, leading to low production zeal and a focus on reducing inventory among lithium salt plants. Demand side, high-nickel cathode producers are advancing scheduled production, continuing operations, and taking deliveries, offering some support for lithium hydroxide demand. Thus, short-term, lithium hydroxide prices are expected to remain weakly stable.