Banter and general comments, page-27247

Platts North Asia Lithium Commentary

• Lithium carbonate offers rise to as high as $50,000/mt
• Seaborne lithium prices surpass Chinese domestic prices

Seaborne lithium carbonate and hydroxide prices rose June 6 amid improved buying interest and a stronger Chinese lithium market.

Platts assessed battery-grade lithium carbonate at $45,500/mt on June 6, up $5,500/mt from June 5 and $7,500/mt from May 30. The assessment for lithium hydroxide was marginally higher at $47,500/mt, up $500/mt on the day and $2,000/mt on the week.
The prices reflect the spot value of battery-grade material on a CIF North Asia basis, referring to deliveries to the main ports of China, Japan and South Korea. Lithium carbonate, however, is normalized to deliveries at Shanghai port.
“We’re seeing stronger and more stable lithium prices in both the Chinese and the international market,” a producer said.
“There have been more inquiries for lithium carbonate and hydroxide,” a North Asian trader said.
Market participants shared that buying interest in the international market had improved since May. A Chinese producer added that European demand is expected to further strengthen in the next quarter due to cyclical demand while US demand was improving due to the Inflation Reduction Act.
Market participants shared that offers for battery-grade lithium carbonate materials were heard to be as high as $50,000/mt with tradable values around $45,000-$50,000/mt. Offers for battery-graded lithium hydroxide materials were also heard to be around $50,000/mt with tradable values around $47,000-$50,000/mt.
“Prices are now higher than DDP China prices, in part because of appreciation of the US dollar,” said a Chinese trader, but also added that that spot demand in the international market was better than the Chinese domestic market. The US dollar was assessed at Yuan 7.1075 at 4:30 pm Singapore time (0830 GMT).
The Platts $45,500/mt assessment for battery-grade lithium carbonate CIF North Asia was equivalent to Yuan 365,682/mt on a DDP China basis, including 13% value-added tax, port and logistics costs, based on S&P Global Commodity Insights’ import-parity calculation.
The DDP China lithium carbonate price was assessed at Yuan 318,000/mt June 6, meaning seaborne lithium carbonate prices were well above Chinese domestic prices.