PMT Megathread, page-1525

• Offers for carbonate move up to Yuan 100,000/mt
• Preholiday stocking activity in market
• Spodumene prices continue to move down

Chinese lithium carbonate prices continued trending down in the week to Jan. 12 on tepid demand, although the pace of decline had slowed.

Platts assessed battery-grade lithium carbonate at Yuan 91,000/mt on a DDP China basis Jan. 12, unchanged on the day but down Yuan 2,000/mt on the week.

Lithium carbonate prices have fallen for nine consecutive weeks since Nov. 10, 2023, at Yuan 145,000/mt, with prices falling Yuan 54,000/mt or 37.2% over a nearly two-month period. However, the downtrend in prices had slowed as the market entered the new year and some sources expected that prices could be bottoming out soon.

Market participants continued to take reference from Guangzhou Futures Exchange for spot market offers.

“We’re offering above Yuan 100,000/mt today for battery grade lithium carbonate, doesn’t make sense for us to offer below because GFE is all above Yuan 100,000/mt also,” said a lithium producer Jan. 12.

Some sources were heard starting to restock in preparation for Lunar New Year holidays.

“Demand for lithium carbonate in January is good, we also delivered some February orders in January,” said a second lithium producer. However, the producer expected demand to remain tepid after Lunar New Year, which would put a cap on price increments.

Platts assessed battery-grade lithium hydroxide at Yuan 88,000/mt DDP China on Jan. 12, unchanged on the day but down Yuan 3,000/mt on the week.

Offers for lithium hydroxide ranged Yuan 85,000-92,000/mt with majority of the offers indicated at Yuan 90,000/mt. Tradable levels ranged from below Yuan 82,000-90,000/mt in the week to Jan. 12.

Inventory levels at cathode makers were heard to last around two months, market sources said.

Upstream, Platts assessed spodumene concentrate with 6% lithium oxide content at $900/mt FOB Australia Jan. 12, unchanged on the day and down $50/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. Offers were heard below $1,000/mt on a CIF China basis.

“Very few trades happen at $850/mt, maybe from … miners who want to expand their market and thus willing to sell at lower prices,” the second lithium producer said.

Platts assessed the spodumene concentrate 0.1% differential to 6% lithium oxide content at $15/mt FOB Australia Jan. 12, stable 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.