Downstream demand continues to pressure prices of lithium...

• Downstream demand continues to pressure prices of lithium salts
• Spodumene prices extends downtrend, falling $200/mt on the week

Platts assessed battery grade lithium carbonate at Yuan 235,000/mt on Aug. 11, on a delivered, duty-paid China basis, down Yuan 5,000/mt on the day, and down Yuan 23,000/mt on the week.

Chinese lithium prices continued to edge lower in the week to Aug. 11, as bearish market sentiment persisted due to the slump in downstream demand.

“Recently not many are in the market inquiring for material as the demand is not good, so prices have kept falling as a result,” said a producer source based in China.

Trading activity in the week was observed to be fairly limited as market participants remained cautious in light of the pessimistic outlook and falling lithium carbonate prices.

“Consumers are not holding a lot of stocks, they only hold 1-2 weeks of inventory,” said a trader source based in China.

“Everyone is bearish [as market] is in the midst of a downtrend due to very little consumer demand,” said a second Chinese producer source.

The source added that the demand for August fell short of expectations despite the market approaching its traditional bullish season.

According to participants, tradable values of battery-grade lithium carbonate were reported in a wide range as they indicated market prices between Yuan 220,000-240,000/mt on Aug. 11.

Platts assessed battery grade lithium hydroxide at Yuan 220,000/mt on Aug. 11, on a delivered, duty-paid China basis, down Yuan 5,000/mt on the day, and down Yuan 25,000/mt on the week.

In comparison, battery grade lithium hydroxide on a CIF North Asia basis was assessed at $34,900/mt on Aug. 11, equivalent to over Yuan 250,000/mt on a delivered, duty-paid China basis, higher than prices observed in the domestic Chinese market.

“The price difference between domestic lithium hydroxide and overseas is very large, so I feel that more goods are exported from China,” said a trader

Offers for battery-grade lithium hydroxide in the domestic market were indicated in the range of Yuan 220,000-230,000/mt on Aug. 11.

Tradable values of battery-grade lithium hydroxide inched lower and market participants indicated prices between Yuan 210,000-230,000/mt in the week to Aug. 11.

Platts assessed spodumene concentrate with 6% lithium oxide content (SC6) at $3,000/mt FOB Australia on Aug. 11, reflecting a $200/mt drop from $3,200/mt assessed in the previous week.

The buying interest for spodumene remained depressed due to the waning prices of lithium chemicals.

“It seemed that nobody is willing to participate [in spodumene auctions],” said a trader source.

Tradable values were indicated in the range of $2,300-$3,400/mt on a FOB Australia basis in the week to Aug. 11, which was lower and wider than the $3,000-$3,500/mt range indicated in the previous week.

Platts is part of S&P Global Commodity Insights.