Most consumers complete restockingMarket expects limited...

• Most consumers complete restocking
• Market expects limited activity in coming week

Chinese lithium prices were higher in the week to Feb. 2 as offers moved up amid some last-minute restocking.

Platts assessed battery-grade lithium carbonate at Yuan 96,000/mt on a DDP China basis Feb. 2, unchanged on the day but up Yuan 1,000/mt on the week.

Offers for battery-grade lithium carbonate began to inch up in the week to Feb. 2 to as high as Yuan 98,000/mt. However, tradable indications heard in the market were concentrated at around Yuan 96,000/mt, despite some lower indications at Yuan 95,000/mt. Some market participants shared that Yuan 95,000/mt battery-grade lithium carbonate was probably non-spodumene origin material.

"Spodumene origin material would be slightly more expensive than the rest," said a Chinese producer, adding that he was seeing offers for spodumene-origin battery-grade lithium carbonate at Yuan 97,000-98,000/mt.

Market participants agreed that the prices were mostly stable due to thin trading activity in the spot market, and expected it to become even more quiet in the coming week as more people in the domestic market head off for the Lunar New Year holidays.

"Spot markets in China are generally very quiet now," said a Chinese trader, but also added that there was some trading activity that happened on the last two days of January as few consumers did some last-minute restocking.

"Market is stable because most spodumene-origin converters are focusing on their term-contracts and are not in the spot market," said a Chinese consumer, adding that given the current spot market prices, these converters' cost of production were considered to be high.

On the demand side, post-holiday market sentiments were mixed. Despite some optimism that demand would come back as downstream inventories would deplete by March, more in the market said that they were still uncertain about a recovery in demand after the holidays.

"I think after the holidays, the market will take a wait-and-see approach," another Chinese producer said, adding that the market remained cautious due to price volatility in the past.

Platts assessed battery-grade lithium hydroxide at Yuan 85,000/mt DDP China on Feb. 2, unchanged on the day but down Yuan 1,000/mt on the week.

Offers for lithium hydroxide were heard within a wide range from as low as Yuan 85,000/mt to as high as Yuan 95,000/mt from producers. However, mainstream tradable levels ranged from low of Yuan 80,000s/mt to Yuan 90,000/mt in the week to Feb. 2.

Indications heard for battery-grade lithium hydroxide were sparse as most consumers shared that their demands were well-covered by term contracts.

"Prices are more messy, and brands matter for hydroxide," said a Chinese consumer.

Upstream, Platts assessed spodumene concentrate with 6% lithium oxide content at $850/mt FOB Australia Feb. 2, unchanged on the day but up $20/mt on the week. Tradable indications for Australian-origin spodumene were heard at around $800-$880/mt on a FOB Australia basis.

Platts assessed the spodumene concentrate 0.1% differential to 6% lithium oxide content at $14.20/mt FOB Australia Feb. 2, up 40 cents/mt on the week. The value per 0.1% lithium oxide was deemed linear in spodumene concentrate containing lithium oxide within the range of 5.5%-6%.

Platts is part of S&P Global Commodity Insights.