Lithium Carbonate Prices Are Seeing a Dipping Trend in China

Lithium carbonate prices have been swinging down in China over the past few months. The linkage between spot battery-grade lithium carbonate prices and futures contract prices has led to a downturn in spot prices due to weaknesses in the futures market.

Industry experts have observed a consistent, though not robust, restocking demand for battery-grade lithium carbonate among consumers. This demand has been inconsequential and nugatory with no particularly strong factor that could or will heave the prices. 

Concurrently, there is a reported scarcity of technical-grade lithium carbonate. One major brine producer in China reportedly has limited supplies of this technical grade, available only to a select group of customers. This scarcity has made it challenging to find spot technical grade units in the market. According to sources, some buyers are purchasing technical-grade lithium carbonate and processing it into battery-grade to sell into the futures market for arbitrage purposes. This activity is thought to be contributing to the tightness of technical-grade lithium carbonate supplies.

The downtrend in lithium prices extends to lithium hydroxide, which has also been tracking the decline seen in the carbonate market. Demand in the nickel-rich nickel cobalt manganese (NCM) battery sector remains sluggish, with only regular stocking demand from consumers noted.

Further reports from East Asia suggest a quiet market with consumers currently well-stocked and showing no interest in acquiring more spot materials. Despite the availability of spot offers for lithium hydroxide from Chinese producers over the past week, none of these offers were concluded, pointing to a very slow spot demand for battery-grade lithium hydroxide. Lithium producers in the region have been focusing on fulfilling long-term delivery commitments amidst this tepid demand.

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According to the article by Procurement Resource, lithium carbonate prices in China are declining recently on the back of weak futures market prices. A lukewarm demand for battery-grade lithium exists, while a scarcity of technical-grade lithium carbonate is reported. Lithium hydroxide prices also follow this downtrend, with sluggish demand in the NCM battery sector. Market activity is subdued, with producers focusing on fulfilling long-term commitments rather than engaging in new spot market transactions.