Good News & Bad News, page-12019

• Demand weak from downstream battery makers
• Pilbara’s pre-auction sale price exceeds expectations

Battery-grade lithium carbonate was assessed down Yuan 1,000/mt day on day at Yuan 469,000/mt June 24 on a delivered, duty-paid China basis, and up Yuan 1,000/mt on the week.

Chinese lithium prices moved sideways in the week to June 24 as downstream demand remained tepid.
“Market isn’t doing too good right now because of the downstream resistance, but I wouldn’t say prices are falling as overall [prices] seem pretty stable,” a trader in China said. “They are uncertain whether their customers would continue to buy according to plan, so they are not in a rush to ramp up [production].”
Offers for battery-grade lithium carbonate were in the range of Yuan 470,000-480,000/mt, mostly concentrated at Yuan 480,000/mt.
“There are more offers than bids in the market now and it’s hard to deal as downstream is not motivated to procure actively,” a second trader in China said.
Tradable values indicated by market participants were between Yuan 460,000-480,000/mt and remained steady throughout the week.
Prices for industrial grade lithium carbonate remained well supported by demand from the lithium-iron-phosphate (LFP) battery sector, and tradable values were indicated at around Yuan 450,000-460,000/mt, similar to the week before.
Tradable values for battery-grade lithium hydroxide remained rangebound throughout the week between Yuan 460,000-470,000/mt.
Battery grade lithium hydroxide was assessed at Yuan 460,000 on a delivered duty-paid China basis, down Yuan 1,000/mt both on the day, and on the week.
In comparison, battery grade lithium hydroxide on a CIF North Asia basis was assessed at $76,000/mt, equating to over Yuan 508,000/mt on a delivered, duty-paid China basis, higher than prices in China.
Pilbara Minerals announced June 23 it had accepted a pre-auction spot offer for 5,000 mt of spodumene with 5.5% lithium oxide at $6,350/dmt FOB Port Hedland, surpassing market expectations and equating to $7,017/mt on a CIF China basis for spodumene with 6% lithium oxide content, inclusive of freight costs.
“This price level is too high and unsustainable; I’m not sure how converters and battery makers are going to make profits,” a producer source said.
Market sources attributed the result to downstream demand recovering slowly and prices of lithium salts remaining buoyant.
“It’s not easy for lithium prices to continue increasing substantially with the downstream resistance,” a trader source said.
Tradable values were indicated at around $6,000/mt FOB Australia in the week.
Spodumene concentrate with 6% lithium oxide content (SC6) was assessed unchanged week on week at $6,400/mt FOB Australia.