Good News & Bad News, page-19761

• Sentiment in lithium salts market remains bearish
• Spodumene prices unchanged as market pegs tradable values at $6,000-$8,000/mt

Platts assessed battery-grade lithium carbonate at Yuan 561,000/mt on Dec. 9, on a delivered, duty-paid China basis, down Yuan 1,000/mt on the day, and down Yuan 9,000/mt on the week.

Chinese lithium prices continued trending downward in the week to Dec. 9, as market sentiment remained bearish and downstream buyers were observed to exhibit more caution in terms of procuring stocks.
"Downstream is destocking in year-end, [and they are] more hesitant to buy material at high prices, so spot prices are coming down slightly," a China-based refiner source said.
Multiple market participants mentioned that trading activity observed in the week remained low as downstream demand waned ahead of the holidays.
"I heard some consumers are already done procuring for Chinese New Year, and some even have enough to last part then, so there is very little procuring interest," a China-based consumer source said.
On the supply side of things, market sources highlighted that destocking activities continued to exert downward pressure on the prices of lithium carbonate.
Offers for battery-grade lithium carbonate in the domestic market were indicated at around Yuan 570,000/mt on Dec. 9.
Tradable values of battery-grade lithium carbonate steadily moved lower during the week and market participants pegged prices to between Yuan 550,000-560,000/mt on Dec. 9.
Platts assessed battery-grade lithium hydroxide at Yuan 562,000 on Dec. 9, on a delivered, duty-paid China basis, down Yuan 1,000/mt on the day, and down Yuan 7,000/mt on the week.
In comparison, battery-grade lithium hydroxide on a CIF North Asia basis was assessed at $82,000/mt on Dec. 9, equivalent to over Yuan 570,000/mt on a delivered, duty-paid China basis, higher than prices observed in the domestic Chinese market.
Tradable values for battery-grade lithium hydroxide inched higher and were indicated in the Yuan 560,000-570,000/mt range.
"Lithium hydroxide’s demand is still quite strong, and I feel that it is slightly higher than lithium carbonate prices for now," a second consumer source based in China said.
The source added that trades remained sparse as most of the market participants are in a watch-and-see mode.
Overall, market participants expect lithium salt prices to continue on its downtrend as rumors of battery maker production cuts and the uncertainty surrounding the continual EV subsidies contribute to the bearish sentiment.
Platts assessed spodumene concentrate with 6% lithium oxide content (SC6) at $7,500/mt FOB Australia on Dec. 9, unchanged from the previous week.
Tradable values were indicated in the $6,000-$8,000/mt range on a FOB Australia basis in the week to Dec. 9.
"If lithium salt [prices] drop consistently then upstream will drop even more, but it will take a bit more time for spodumene to follow suit," a producer source said.