Banter and general comments, page-7024

• Lithium carbonate prices rise for 28th consecutive week
• Lithium hydroxide prices up for 9th consecutive week
• Supply unable to meet projected demand: source

Chinese lithium prices extended rally on bullish demand in the week to Jan. 14, with the highest offer placed at Yuan 380,000/mt, up Yuan 30,000/mt week on week.

S&P Global Platts assessed battery-grade lithium carbonate at Yuan 320,000/mt Jan. 14 on a delivered, duty-paid China basis, up Yuan 5,000/mt from Jan. 13 and Yuan 22,000/mt from Jan. 7. The assessed price rose for the 28th consecutive week.
Tradable levels were pegged in a wide range of Yuan 270,000-380,000/mt in the week to Jan. 14, although most of the tradables were congregated in the range of Yuan 320,000-330,000/mt.
“Prices are all over the place,” said an international producer. Lithium carbonate prices have been increasing by a few thousand yuan every day due to the frenzy in domestic spot sales.
Downstream consumers demand in the past year is equivalent to the total demand of three years, said a Chinese producer. “At this rate, the raw materials won’t be able to catch up with everyone’s demand,” he added.
Due to the scarcity in supply, most of the trades heard concluded in the market were in small volumes of about one truckload, or 30 mt. “Almost all of [the trades] are scattered orders,” said a Chinese producer.
Tighter supply is expected to bolster prices further as more producers begin their maintenance, which will significantly cut down the already scarce supply.
“Our plants are already under maintenance,” said another domestic producer.
Even for industrial-grade lithium carbonate, offers were heard at Yuan 320,000-330,000/mt, cash payment upfront, with scheduled delivery in February or later.
S&P Global Platts assessed battery-grade lithium hydroxide at Yuan 255,000/mt Jan. 14, on a delivered, duty-paid China basis, up Yuan 5,000/mt on the day.
As majority of the lithium hydroxide supplies were tied to offtake agreements, price fluctuations were attributed to the increase in feedstock spodumene and lithium carbonate prices.
Looking ahead, lithium prices are expected to potentially increase further.
“From next week onwards, there won’t be much activity because people are on holidays. Lithium carbonate prices might stabilize in the range of Yuan 350,000-400,000/mt. After LNY, people want to trade so prices will near the [Yuan] 400,000,” said a Chinese market analyst.
Upstream, S&P Global Platts assessed spodumene concentrate with 6% lithium oxide content (SC6) at $3,000/mt FOB Australia Jan. 14, up $150/mt week on week.
A Q1 offtake agreement was heard signed at $2,500/mt. Tradable levels for spot materials were largely indicated at $3,000-$3,500/mt range.
“Spot 6% lithium oxide spodumene would likely easily attract $3,500/dmt CIF China basis, or higher,” said a producer.
“I feel that the momentum is still strong. I just cannot see how supply can keep up with the projected demand for this year,” said an international trader.