Lithium salt prices ascension continues Spodumene supply...

• Lithium salt prices ascension continues
• Spodumene supply constraint exerts downward pressure on converters

According to the Platts price assessment from S&P Global Commodity Insights, battery-grade lithium carbonate was assessed at Yuan 480,500/mt Aug. 12 on a delivered, duty-paid China basis, flat on the day and up Yuan 500/mt on the week.

While some small trades were heard done at Yuan 485,000-490,000/mt, market sources largely agreed that mainstream tradable levels were still closer to the Yuan 480,000/mt mark in the week to Aug. 12.
“I think lithium is currently in its recovery stage, for stocks delivering in mid-end August, prices are already at Yuan 480,000/mt, if not higher,” a Chinese trader said.
Industrial grade lithium carbonate prices also edged up and were heard tradable between Yuan 465,000-470,000/mt, according to market sources.
Recent new energy vehicle production and sales statistics in China had boosted market sentiment, with sources expecting lithium prices to at least maintain at current high levels for the remainder of the year.
With demand only expected to increase in the coming months and considering seasonal production cuts at salt lakes during winter, some sources expected prices to increase even further in the coming months, despite current high levels already posing a challenge to consumers.
“Ultimately it comes down to market fundamentals,” said a Chinese producer. “If demand continues to outpace supply, then sellers would have no choice but to sell to the highest bidder.”
Battery grade lithium hydroxide prices also saw gains on the back of tight spodumene supply and higher prices for industrial grade lithium carbonate, used by some converters to produce hydroxide via causticization.
Battery grade lithium hydroxide was assessed at Yuan 478,000/mt on Aug. 12, up Yuan 1000/mt on the day and up Yuan 3000/mt on the week, with tradable values heard around Yuan 475,000-485,000/mt.
Spot offers were scarce, with small trades heard done slightly above Yuan 500,000/mt, although most sources had pegged mainstream tradable levels at Yuan 475,000-485,000/mt.
Spodumene concentrate with 6% lithium oxide content (SC6) was assessed at $6300/mt FOB Australia on Aug. 12, flat on the week, according to S&P Global.
In the week ended Aug. 12, tradable levels were mostly heard above $6,000/mt as spot supply remained tight.
With practically no spot cargoes available in the market, Pilbara’s auction prices were still an important point of reference for market participants, a Chinese trader said.
While high raw material prices were a pain point for converters and downstream consumers, market fundamentals would likely keep spodumene prices supported in the near term, sources said.
“Until new supply comes online, there’s no reason for spodumene prices to adjust downwards," a trader commented.