- Spot activity remains slow
- Tradable values stable, offers fluctuate
Spot activities remained tepid although offers for battery-grade lithium carbonate were closer to around Yuan 97,000-99,000/mt.
Platts assessed battery-grade lithium carbonate at Yuan 95,000/mt on a DDP China basis Jan. 19, flat on the day and up Yuan 4,000/mt on the week. The tradable range for battery-grade lithium carbonate fluctuated around Yuan 93,000-97,000/mt.
Some consumers were restocking for February production, although most procurement sources did not see any changes in the market. "Not much happening in the physical spot market, traded volumes are very limited," said a producer.
"Now consumers weigh more on the prices, they can accept lithium carbonate as long as it is battery-grade, regardless of origin," added the producer.
Although consumers were asking for lower prices, most traders were unwilling to sell too low away from their offers as they could make more by delivering to the futures exchange.
"Some traders offered based on March delivery futures prices, if you ask for lower prices, they can just wait until the delivery month," said a Chinese trader.
At the same time, some refiners were heard having lower inventory levels, so their offers were still higher at around Yuan 100,000/mt.
Contrarily, demand for industrial-grade lithium carbonate was higher than battery-grade, with tradable values at Yuan 86,000-88,000/mt.
"It is more cost-efficient to buy industrial-grade lithium carbonate and convert it into battery-grade, that's why," said a Chinese consumer.
Platts assessed battery-grade lithium hydroxide at Yuan 85,000/mt DDP China Jan. 19, down Yuan 2,000/mt on the day and Yuan 3,000/mt on the week. Offers were heard at Yuan 85,000-88,000/mt.
Consumers remained bearish for the Chinese lithium market in the near term. "Offers are fluctuating, but the actual prices are more stable at a lower level, considering the tepid demand," said another consumer.
"After all, a price rally still awaits, and I do not think it will be a great one," added the consumer.
Upstream, Platts assessed spodumene concentrate with 6% lithium oxide content at $840/mt FOB Australia Jan. 19, down $60/mt on the week.
Platts is part of S&P Global Commodity Insights.
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