- Chinese lithium carbonate prices down Yuan 1,000/mt on day
- GFEX lithium futures draws mixed market feedback
Chinese lithium prices continued to trend downward in the week to July 28.
Platts assessed battery-grade lithium carbonate at Yuan 265,000/mt DDP China July 28, down Yuan 1,000/mt on the day and Yuan 13,000/mt on the week.
Mainstream tradable levels of battery-grade lithium carbonate moved down by Yuan 20,000/mt during the week, with market participants pegging prices around Yuan 250,000-270,000/mt July 28.
A trade at Yuan 265,000/mt had informed July 28’s assessment, with majority of the offers hovering at Yuan 270,000/mt.
Downstream buying activities remained tepid in the midst of a price downtrend, with little trades heard concluded in the week to July 28.
“Downstream acceptance level is lower than Yuan 260,000/mt,” said a Chinese consumer who added that there’s no rush for consumers to procure due to lack of demand.
China’s Guangzhou Futures Exchange launched the lithium carbonate futures contract July 21. Prices on the futures exchange had dropped at the start of the week, which dampened market sentiment slightly. However, a slight pick-up in prices was seen towards the latter part of the week.
The impact of GFEX’s futures on the spot market is limited given that January contracts are still months away and a handful of sources were also cautious on participating in it, sources shared.
As the trading of lithium carbonate futures was a relatively ‘new’ concept to many Chinese participants, many of them had taken a wait-and-see approach.
“We will observe for 3-6 months first,” said a large Chinese lithium converter.
Tradable levels for battery-grade lithium hydroxide were heard largely at Yuan 250,000/mt, with some indicating below this level due to tepid demand from nickel manganese cobalt batteries.
Platts assessed battery-grade lithium hydroxide at Yuan 250,000/mt DDP China basis July 28, flat on the week.
Upstream, Platts assessed spodumene concentrate with 6% lithium oxide content at $3,200/mt FOB Australia July 28, down $100 on the week.
Tradable range was seen in the range of $3,000-3,400/mt for Australian ores.
African origin ores were heard tradable at around $2,000/mt.
Platts is part of S&P Global Commodity Insights.
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