Good News & Bad News, page-27112

https://news.metal.com/newscontent/102165640/Exclusive:-Chinas-Metals-Output-in-March/

Lithium carbonate

China’s lithium carbonate output stood at 30,585 mt in March, down 1% MoM, but up 17% YoY. On the one hand, the output of salt lake-based smelters picked up after the weather warmed up, and some spodumene-based smelters recovered from maintenance. On the other hand, lepidolite-based smelters slashed their production noticeably and battery recycling market was quiet, resulting in a decline in total lithium carbonate output. In April, China’s lithium carbonate output is estimated to drop 3% MoM to 29,756 mt, albeit up 12% YoY. In response to disappointing downstream demand and potential losses arising from continuously plunging lithium carbonate prices, some spodumene and lepidolite-based smelters are likely to cut their output.

Lithium hydroxide

China’s lithium hydroxide output was 23,891 mt in March, down2% MoM, but up 36% YoY. From the perspective of causticisation, causticisation plants were keen on purchasing lithium carbonate to produce lithium hydroxide due to the big price difference between the two and strong demand. From the perspective of smelting, some large smelters reduced their production further due to lithium ore shortages, while other types of smelters also lowered their output amid pessimistic demand outlook. Sharply falling downstream demand has driven both smelters and causticisation plants to cut their production. As such, SMM estimates that the domestic lithium hydroxide output will decline 5% MoM to 22,712 mt in April, despite a year-on-year rise of 23%.

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Interesting.

Hydroxide converters taking advantage of the lowered pricing of carbonate.