Lithium carbonate imports remained high in March, prices inched lower due to growing inventory

SHANGHAI, Apr 27 (SMM) – China's import of lithium carbonate was 6,481 mt in March, down 9.5% month-on-month, but up 60% year-on-year. From January to March, imports totalled 19,141 mt, a year-on-year increase of 116%. Imports from Chile were 5,585 mt, down 12.9% month-on-month, but up 127% YoY. Imports from Argentina were 691 mt, down 4.6% month-on-month and 56.3% YoY.

Lithium carbonate inventory rose 2,000 mt in March, accounting for about 10% of market demand. Increased supply was the main reason behind inventory accumulation. Domestic production surged 48.5% month-on-month and import volume remained high. Demand remained weak due to the off-season. Some downstream customers said that there was no difficulty in purchasing, and the room for price negotiation was larger than in Q1. According to SMM data, the average price of industrial-grade lithium carbonate was lowered by 1,000 yuan/mt on April 14 and the price may continue to show a slight downward correction in Q2.