Production has declined and lithium carbonate prices have rebounded

According to the Commodity Market Analysis System of Shengyi Society, there have been signs of recovery in domestic lithium carbonate recently. As of January 21, the average price of battery grade lithium carbonate in China was 79780 yuan/ton, an increase of 1.24% from 78880 yuan/ton at the beginning of the year; The average price of battery grade lithium carbonate is 76660 yuan/ton, an increase of 0.26% from 76400 yuan/ton at the beginning of the year.

Sodium Molybdate

 

Supply side production reduction

 

From a foreign perspective, the decline in lithium prices in the third quarter of 2024 has led to increased production cuts in overseas lithium mines, with some mining companies selling assets to recoup funds and some lithium mines reducing production.

 

Domestically, lithium salt factories in China have maintenance and shutdown plans, and production is expected to continue to decrease.

 

Strong performance on the demand side

 

The operating rate of downstream positive electrode material enterprises remains at a high level, with no significant reduction in production. The demand for pre holiday replenishment is strong, and spot transactions are gradually improving.

 

The production schedule of battery factories is relatively stable, with a significant increase compared to the same period last year.

 

Macro deposit positive news

 

Domestically speaking, the Ministry of Finance has issued the “Several Measures to Strengthen Support for Large scale Equipment Upgrades and Consumer Goods Trade in”, and by 2025, the “Two New” policies in the automotive market will be strengthened and expanded. Automobile companies may continue the price war to support demand expectations.

 

From a foreign perspective, the unrest in mining areas in Nigeria and Mozambique has raised concerns in the market about their impact on the shipment of lithium concentrates from Africa.

 

Business Society’s lithium carbonate data analyst believes that as the Spring Festival approaches, most logistics have been suspended, and spot transactions are bleak. It is expected that lithium carbonate will operate weakly and steadily in the near future.

http://www.lubonchem.com/

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