Supply Deficit of Lithium Carbonate to Narrow in December

SHANGHAI, Dec 15 (SMM) - Chinese lithium carbonate output stood at 36,651 mt in November, up 7% MoM and 95% YoY. The capacity ramp-up and the ended maintenance of some manufacturers contributed to the slight increase in supply, but the demand from battery factories decreased amid the subsiding production rush of terminal car companies. In such as context, some ternary and LFP cathode material producers bought raw materials cautiously and mainly consumed their in-plant inventories in anticipation of a further fall in lithium carbonate prices. Therefore, the prices trended lower in mid-to-late November. In December, salt lake enterprises will cut their output on a small scale. Output of lithium carbonate extracted from lepidolite will fall due to environmental protection-related regulations and other reasons. On the demand side, due to the weakening terminal demand, the output of cathode active materials (CAMs) will decline further. It is expected that the supply deficit of lithium carbonate will narrow in December, and the prices will continue to grow slightly.