- Slow demand expected to continue
- Tradable indications, trades heard higher for hydroxide
- Spodumene prices continue to move down
Chinese lithium carbonate prices continued to fall as downstream demand slowed, while spot activity was mostly impacted by futures.
Platts assessed battery-grade lithium carbonate at Yuan 93,000/mt on a DDP China basis Jan. 5, down Yuan 2,000/mt on the day and on the week.
Spot market prices were mostly affected by lithium carbonate futures prices on the Guangzhou Futures Exchange, which saw prices fluctuate more than Yuan 5,000/mt in the week.
Offers and tradable indications for battery-grade lithium carbonate were heard to have concentrated at Yuan 100,000/mt or slightly above earlier in the week when the GFE prices were above Yuan 100,000/mt. Some offers in the market were pegged to GFE contracts with a Yuan 1,000-2,000/mt discount.
However, moving in tandem with GFE prices, spot tradable indications were heard lower at around Yuan 90,000-93,000/mt Jan. 5. Offers were also heard lower at Yuan 95,000-100,000/mt
"Spot battery-grade lithium carbonate is using GFE as a reference but price movements on the GFE have nothing to do with market fundamentals," said Chinese trader, adding that actual consumer demand was still slow.
Some producers were still giving lower tradable indications and offering lower in the market at around Yuan 100,000/mt and lower.
"Some refiners are willing to sell below Yuan 100,000/mt, but the problem is consumers don't have much demand," said another Chinese trader.
Market participants agreed that the domestic market would remain quiet throughout the rest of the month as the Lunar New Year holidays approach.
"The market is still in a surplus," said a Chinese producer. "There's not much downstream buying and it'll be the holidays soon."
"It's the usual restocking season for the Lunar New Year, but I can't see [much] restocking demand," said a trader.
Platts assessed battery-grade lithium hydroxide at Yuan 90,000/mt DDP China on Jan. 5, up Yuan 3,000/mt on the day and Yuan 2,000/mt on the week.
Offers for lithium hydroxide ranged between Yuan 85,000-95,000/mt due to the recent lower liquidity in the domestic spot market. However, a trade was heard at Yuan 90,000/mt Jan. 5.
Upstream, Platts assessed spodumene concentrate with 6% lithium oxide content at $850/mt FOB Australia Jan. 5, down $100/mt on the day and $120/mt on the week.
Tradable indications for Australian origin spodumene were heard around $800/mt to as high as $1,000/mt on a CIF China basis. However, most indications were concentrated around $900/mt, equivalent to approximately $850/my on an FOB Australia basis. Offers were heard below $1,000/mt on a CIF China basis.
"There's not too much demand for spodumene because demand for chemicals was not much," said a Chinese producer.
Platts assessed the spodumene concentrate 0.1% differential to 6% lithium oxide content at $14.20/mt FOB Australia Jan. 5, down $1.60/mt on the day. The value per 0.1% lithium oxide was deemed linear in spodumene concentrate containing lithium oxide within the range 5.5%-6%.
Platts is part of S&P Global Commodity Insights.
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