Banter and general comments, page-18383

• Trades heard to center around Yuan 580,000/mt
• Market retreat on production cut rumors
• Market fundamentals continue to be tight

Platts assessed battery grade lithium carbonate at Yuan 580,000/mt Nov. 25 on a delivered, duty-paid China basis, down Yuan 8,000/mt on the week. Chinese battery-grade lithium carbonate was heard to have traded as high as Yuan 600,000/mt in the week to Nov. 25 as spot units remain tight despite cautious sentiments.

Mainstream tradable levels were heard slightly lower to last week levels at Yuan 570,000-590,000/mt, with Chinese market participants reporting majority of spot trades edging closer to the Yuan 580,000/mt market.
“Lithium prices won’t crash but prices would not be able to rally even higher anymore, as downstream consumers are very cautious now," a Chinese producer commented. "However, market fundamentals are still very strong and will continue to support prices to trade within a healthier range."
According to market sources, persistent rumors of production cut by battery makers continued to weigh on sentiments in the market.
"Rumors of steep production cut are going around the market bringing salt prices down, but with Covid and Winter affecting salt lake production the market is still very well supported," another Chinese trader shared.
"People are definitely slowing down in this market as we approach the top, but i doubt battery maker can reduce production as rumored, I think it’s more of a game against the sellers," A Chinese trader shared expecting prices to stay rangebound as participants turn risk adverse.
Majority of the market sources surveyed shared similar sentiments, with most expecting prices to trade rangebound within the Yuan 550,000-580,000/mt mark, as seller and buyer strive to keep the market sustainable.
Spot availability for battery grade lithium hydroxide remained tight despite weakening lithium carbonate prices as international demand remains robust and competitive, with spot tradable levels slightly down in the Yuan 565,000-585,000/mt, sources said.
Platts assessed battery-grade lithium hydroxide at Yuan 573,000/mt Nov. 25, on a delivered, duty-paid China basis, down Yuan 3,000/mt on the week.
"Liquidity has been tighter in the Lithium Hydroxide market comparatively, I think that’s why we see a milder fall in prices but a wider range of prices," a Chinese trader commented, expecting prices to stay rangebound.
North Asia market remained tight and robust with trades heard as high as $86,000/mt in the week to Nov. 25.
Platts assessed spodumene concentrate with 6% lithium oxide content (SC6) at $8,000/mt FOB Australia Nov. 25, down $200/mt on the week, reflecting fall in sentiments for lithium salt and lower tradable indication heard in the market.
"It’s very hard to call what price spodumene is at due to the lack of transparent liquidity, but I think a fair estimate will be a balance between the auction price and back calculations from Lithium salt prices," an international trader commented, expecting prices to stay high as spot supply remain tight, but not at the linear conversion levels reported from the previous tender.