Good News & Bad News, page-4109

• Chinese output outlook uncertain due to power consumption curbs
• Market participants hold back from trading

Chinese lithium carbonate prices were unchanged Oct. 1, as many participants were absent at the start of the country's Golden Week holidays from Oct. 1-7.

S&P Global Platts assessed battery grade lithium carbonate at Yuan 185,000/mt and battery-grade lithium hydroxide at Yuan 170,000/mt Oct. 1, both unchanged from Sept. 30, on a delivered, duty-paid China basis.
The sentiment in the market was weak Oct. 1 due to the Chinese government's orders to curb power consumption and production across industries.
The mandated production curbs were, however, expected to have a limited effect on the new energy vehicle (NEV) industry, some market sources said.
“As of now, the power cut has no impact on us. We were given priority access to the power supply,” a Chinese precursor maker said.
Some other producers in the NEV industry said they had been affected by the government's policy.
“Our production suffered a 50% cut. But for those who can, they will continue production throughout the one-week holiday, although logistics and transportation will be affected,” a Chinese cathode-maker said.
Although the government's restrictions appeared to be less stringent in the upstream raw materials production sector and the nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) battery industry, market sources expressed reservations in entering the market due to the prevailing uncertainties around production as well as high raw materials costs.
“It’s a tough situation now, [I’m] not sure if the NEV industry will be affected, many are watching and waiting first,” a Chinese lithium dealer said.
“We heard that the government may allow some producers to continue production when the holiday ends. We will see how things go,” another Chinese trader said.
Battery grade lithium carbonate spot offers were at Yuan 190,000-200,000/mt, although many sellers preferred to wait until the end of the holiday period, sources said.
Spodumene concentrate with 6% lithium oxide content (SC6) was assessed at $2,444/mt FOB Australia Oct. 1, unchanged from Sept. 24.