Lithium carbonate expected to continue downtrendLimited spot...

Lithium carbonate expected to continue downtrendLimited spot lithium hydroxide trades ahead of holidayConcerns grow for spodumene amid falling chemical pricesChinese domestic lithium prices continued their downward trajectory due to weak fundamentals. During the Labor Day holiday, which runs from May 1 to May 5, there was sparse trading and minimal procurement activity from downstream.Initial offers began at Yuan 68,320/mt earlier in the week but decreased to around Yuan 67,000/mt by April 30, just before the holiday."Last week, there were some restocking activities; some traders could trade 2,000-3,000 mt per day, but this week, all the restocking has been completed, so no more restocking this week," said a trader.Market participants were also closely monitoring the decline in Guangzhou Futures Exchange prices, which stood at Yuan 65,960/mt on May 2. This contributed to a further reduction in buying interest from the downstream sector.Platts assessed battery-grade lithium carbonate at Yuan 66,500/mt on a DDP China basis on May 2, unchanged day over day but down Yuan 2,000/mt week over week.Sources reported a decline in lithium demand, especially from the energy storage system sector and certain LFP battery orders; however, some sources still observed a slight growth in their LFP battery orders for May.Overall, market sources maintained a bearish outlook, anticipating that lithium prices may further decline to the Yuan 65,000/mt level.While lithium hydroxide was perceived to have slightly more profit than lithium carbonate, traders observed no trades in the Chinese market for the week ending May 2.Platts assessed battery-grade lithium hydroxide at Yuan 64,800/mt DDP China on May 2, steady day over day but down Yuan 700/mt week over week. The latest tradable values were last heard at below Yuan 65,000/mt on April 30.Upstream, the bid-ask gap for spodumene of Australian origin had shown a discrepancy, with mainstream tradable indications heard around $750-760/mt CIF China on a 6% lithium oxide basis, translating to approximately $720-730/mt on an FOB Australia basis. A miner noted that many buyers are now sitting on the sidelines or seeking prices below $700/mt CIF China."GFE is dropping too quickly, I think most of the market participants want to see what will happen next," said a producer, noting that the buyers have significantly lower price expectations than miners, leading to a need for time to narrow the bid-ask gap amid ongoing upstream and downstream concerns.Platts assessed spodumene concentrate with 6% lithium oxide content at $720/mt FOB Australia on May 2, flat day over day but down $35/mt week over week. The 0.1% spodumene concentrate differential, reflecting the value of each 0.1% of lithium oxide for spodumene grade within a 5.5%-6% range, was assessed at $12/mt FOB Australia.Latest tradable values for spodumene of African origin were heard lower at $710-$720/mt CIF China on a 6% lithium oxide basis. However, one trader described this price level as "loss-making" but remained optimistic about a shift in the market."It depends on how buyers and other market participants react, I think, right now only some financial institutions are making small profits from the GFE," the trader remarked.Platts assessed spodumene concentrate with 5.5% lithium oxide content at $650/mt CIF China on May 2, unchanged day over day and down $30/mt week over week.Platts is part of S&P Global Commodity Insights.PLS Price at posting: $1.48 Sentiment: Sell Disclosure: Not Held1 Report ReplyTop StoriesNYRNyrada pushes through to third cohort in Phase 1 trial for NYR-BI03HotCopper Highlights, Week 18: Imugene's letter to investors; Dimerix & DatelineWeek 18 Wrap: Oz election here; China and US reportedly chat tariffs & ASX revivalFrom the Outback to the Andes: Why ASX-listed miners are moving into Latin AmericaListen: HotCopper Podcast 011 - Pre-election special - Showdown time Dutton vs AlbaneseFriday’s HotCopper Trends: | Viking's drill results, Advance's raise May 2, 2025'New Clear Days': Experts present case for nuclear at WA Mining Club eventGiant Mining Extends Drilling with Visible Copper MineralizationIMUYes, we burn a lot of cash: Imugene issues letter to investors as 1Y returns -72%Tariff Wrap (2 May): Don't forget we're still waiting for pharma, auto & copperStart writing...SymbolSentiment* (required)Position*PLS $1.48 1.37%NoneSellHoldBuyNot HeldHeld PreviewPosting GuidelinesI hereby agree to terms of use, privacy policy, code of conduct and asic policy. 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