Lepidolite And Spodumene Prices Temporarily Stabilize Amid Weak Supply And Demand

Lepidolite prices remained stable for the week ending January 25, continuing their steady trend. Lepidolite trade is light; Jiangxi smelters cut output, except a few at normal levels for trade and arbitrage gains. The majority of manufacturers requiring external purchases of lepidolite ore are progressively entering a phase of reduced or suspended production, reducing demand and scheduled production. Supply side activity has also dropped, with suppliers mainly honoring long-term contracts due to falling demand. As lithium carbonate prices stabilize at 90,000 to 100,000 yuan/mt, some miners consider holding or raising prices, facing pushback from downstream, causing a split in price expectations. Weak market dynamics lead to a temporary price stability.

Spodumene concentrate CIF prices stayed stable as of week ending January 25, with lithium salt producers showing tepid interest in long-term orders, leading to muted transactions. Additionally, domestic ports and private warehouses have high spodumene inventories, ensuring a plentiful spot supply within the country. As a result, some domestic lithium salt producers stopped renewing long-term contracts with Australian mines, and Brazilian mines saw low client interest in Q1 pickups. Overseas mines' Q4 2023 financial reports highlight cost reduction as a key focus for future competition. Consequently, if lithium salt prices drop post- Spring Festival amid weaker-than-expected demand, imported spodumene prices may also fall.