Spodumene Prices, page-2066

Some interesting data for January and expectations for February, ignore the m-o-m decrease due Chinese New Year, and focus on the y-o-y increases, all up near 50%, so downstream demand and capacity is there, however raw material to feed those chem facilities is expected to grow at ~25% this year.

Lithium carbonate

In January 2022, China's lithium carbonate production was about 18,844 mt, a decrease of 8% month-on-month and a year-on-year increase of 48%. In January, the major domestic factories in Sichuan and Jiangxi provinces shut down for maintenance, which lasting for 5-30 days before or during the Spring Festival. At the same time, due to the lack of mines, some medium-sized smelters were shutdown. Whereas on the demand side, it is difficult for downstream enterprises to cut their cost under the circumstances that the price of lithium carbonate continues to rise. Besides, procurement becomes more difficult because the overall price was still high and raw materials are in shortage even demand were getting slightly weak, thus imposing continued high price of lithium carbonate. In February, the supply of some lithium carbonate manufacturers will rebound slightly as they gradually go back to work. However, considering the number of working days is less in February, the output of lithium carbonate is expected to slightly rebound to 19,396 mt in February 2022, an increase of 3% month-on-month and a year-on-year increase of 57% .

NCM cathode material

In January 2022, the output of NCM cathode material was approximately 46,262 mt, a decrease of 2.3% month-on-month and an increase of 52% year-on-year. As the output of some manufacturers returned to normal levels after the end of the previous year's impulse, the overall supply decreased slightly from the previous month. In terms of the 5-series, due to the increase in orders from domestic top battery factories, the output increased; however, in the high-nickel material part, the overseas market has increased their demand for 8-series products, while the domestic market's demand decreased significantly. As a result, the overall production declined slightly. After entering February, due to shorter working days, some small and medium-sized manufacturers faced more difficult to purchase lithium salts, and the price is hard to reduce, thereby reducing the overall rate to resume to work. Many enterprises delayed their delivery of orders or work resumption. Therefore, NCM cathode material saw a marked decline in supply. In February 2022, the output of NCM cathode material is expected to be 42,539 mt, a decrease of 8% month-on-month and an increase of 52% year-on-year.

And NSS, Chems are up,