The Chinese lithium market saw notable price movements in the week ending August 29. Lithium carbonate prices declined, influenced by volatility in the futures markets, while lithium hydroxide prices softened due to subdued spot demand.
Battery grade lithium carbonate saw a slight increase in market activity with limited restocking by consumers. However, industry participants remain cautious about the near-term price outlook, citing ongoing oversupply concerns.
On the Guangzhou Futures Exchange, lithium carbonate futures closed at 76,850 yuan ($10,828) per ton on Thursday, up 1,400 yuan from the previous week. The contract fluctuated between 73,100 and 78,100 yuan per ton on August 23-29.
Fastmarkets’ assessment of battery grade lithium carbonate prices in China narrowed to 71,600-75,000 yuan per tonne, down from 71,000-77,000 yuan per tonne the previous week. The lithium hydroxide market remained subdued with limited demand outside of long-term contracts. Fastmarkets reported battery grade lithium hydroxide prices in China at 71,000-75,000 yuan per ton, down 1,000 yuan from the previous week.
In the China, Japan and Korea (CJK) market, lithium prices remained stable amid low spot demand and limited trading activity. East Asian consumers remained cautious, anticipating potential further price declines due to current market conditions.
Fastmarkets’ daily price assessments for battery grade lithium hydroxide and lithium carbonate in the CIF CJK market held steady at $9.90-11.20 per kg and $10.20-11.50 per kg, respectively.
Industry analysts note that while increased lithium iron phosphate (LFP) battery cathode production is expected in September, potentially supporting lithium carbonate demand, overall market sentiment remains cautious due to the ongoing supply/demand imbalance.
Source: Fastmarkets
