GLOBAL LITHIUM WRAP: China’s battery-grade hydroxide price decline accelerates in stagnant market

• Lithium hydroxide prices continue to fall on negative sentiment. 
• Lithium carbonate prices still under downtrend pressure but were stable week on week. 
• Downstream consumers received lower offers and were cautious about market direction in response to uncertainties on prices. 
• Lower prices for battery-grade and industrial-grade carbonate materials from Qinghai keep the downward pressure on market outlook.

With no immediate demand and a stagnant market, Metal Bulletin’s Chinese domestic battery-grade lithium hydroxide prices drifted lower on Thursday. 

Battery-grade lithium hydroxide monohydrate (min 56.5% LiOH.H2O) prices ex-works China fell to 130,000-135,000 yuan ($19,641-20,396) per tonne on Thursday, down from 135,000-140,000 yuan per tonne last week.

“We received offers for lithium hydroxide in the range of 130,000-135,000 yuan per tonne from suppliers, but we have no plan to purchase more stocks for the moment and will keep watching for market direction,” a cathode producer told Metal Bulletin.

In the carbonate market, buyers remained hesitant due to expectations of lower prices in the coming weeks. More producers have lowered their offering prices to 120,000 yuan per tonne although there are still a few producers insisting on higher prices of 125,000 yuan per tonne.

Metal Bulletin’s Chinese domestic spot battery-grade lithium carbonate price (min 99.5% Li2CO3) was unchanged week on week at 120,000-125,000 yuan per tonne on Thursday.

In addition to low demand, cheap lower quality battery-grade material and falling prices for industrial-grade material from the Qinghai region continue to put downward pressure on lithium carbonate compound prices.

“We heard some deals concluded below 120,000 yuan per tonne for lithium carbonate, but we are unwilling to lower prices to such levels close to production costs,” a Chinese producer said. “[But] some traders were unwilling to hold more stocks and sold materials at lower level for fear of further prices decrease later.”

Asian carbonate seaborne price widens
The cif China, Japan and Korea battery-grade lithium carbonate price range widened upward on Thursday with new deal concluded at that level.

Metal Bulletin assessed battery-grade lithium carbonate (min 99.5% Li2CO3) prices at $18-20 per kg on a cif China, Japan and Korea basis from $18-19.50 per kg previously, while hydroxide (min 56.5% LiOH.H2O) prices held steady at $19-20 per kg.

“The price range is $18-20 per kg for battery-grade lithium carbonate on a cif China, Japan and Korea basis. While some customers say there are prices below $18 per kg, we are unwilling to sell at that low level,” a lithium producer told Metal Bulletin.

European, US prices unchanged
In Europe and the United States, the lithium spot market held steady with prices unchanged in quiet market conditions.

The battery-grade lithium carbonate price was stable at $17.50-20 per kg while hydroxide spot market price was unchanged at $19-20 per kg, on a delivered duty-paid basis in Europe and the US, according to Metal Bulletin’s market assessment on Thursday.

Metal Bulletin’s trade log for battery-grade lithium carbonate in China for June includes trades, bids and offers reported to Metal Bulletin.

Learn more about Metal Bulletin’s lithium pricing methodology and read the latest lithium price spotlight.

*All lithium carbonate, hydroxide and spodumene prices are available in our Battery Raw Materials Market Tracker. Get a sample of the report here.