A Lithium Carbonate Smelter In Jiangxi Announces Maintenance In September. How Does The Current Lithium Price Affect The Mentality Of Lithium Salt Factories?

SHANGHAI, Sep 1 (SMM) – On August 29, 2023, Jiangxi Jiuling Lithium issued an announcement stating that the group has decided to conduct segmented production shutdown and maintenance for Jiangxi Feiyu New Energy Technology Co., Ltd. from September 5, 2023, to September 24, 2023. The corresponding output is expected to be around 1,000 mt, and normal production will resume starting from September 25, 2023. According to SMM statistics, the total production of lithium carbonate in China in July was 45,314 mt, of which the production using lepidolite for smelting was 13,110 mt.

On August 29, the SMM battery-grade lithium carbonate index was 213,283 yuan/mt, a decrease of 4,498 yuan/mt compared to the previous working day. The price range for battery-grade lithium carbonate was between 207,000 and 222,000 yuan/mt, with a decrease of 5,500 yuan/mt compared to the previous working day. The price range for industrial-grade lithium carbonate was between 198,000 and 208,000 yuan/mt, with a decrease of 3,000 yuan/mt compared to the previous working day. Due to the slower-than-expected demand recovery, downstream purchasing volume remained low, intensifying the pessimistic sentiment in the spot market. As a result, in the current situation of oversupply, prices continued to decline.

Despite the approaching traditional peak demand period in September, there is still no sign of improvement in lithium prices, which only stabilized for nearly a week. According to information from cathode material companies obtained by SMM, current orders and subsequent production schedules in battery factories are not meeting expectations, resulting in limited demand growth during the usually robust period of September and October. In terms of costs, the long-term contract prices between Australian mines and domestic enterprises remain largely above $3,000/mt in the third quarter. Companies that heavily rely on imported lithium spodumene are currently facing losses, which have a significant impact on production and shipment mentality. This may provide some support for future lithium carbonate prices. SMM will continue to provide updates on this matter.