GLOBAL LITHIUM WRAP: China battery-grade lithium hydroxide dips sharply week on week

China’s lithium market continued to move down on ample availability of material and depressed demand, leading the battery-grade lithium hydroxide spot price to sharply fall over the week to August 1.

Seaborne Asian lithium spot prices followed the domestic price in China with small price adjustments, while the battery-grade lithium hydroxide price in Europe and the United States dropped.
  • The Chinese battery-grade lithium hydroxide spot price fell by 5,000 yuan ($720.83) per tonne week on week on material availability and poor demand.
  • Chinese spot prices and seaborne Asian prices have also moved down week on week.
  • Battery-grade lithium hydroxide prices in Europe and US decline week on week, battery-grade lithium carbonate stable.
China’s domestic battery-grade lithium carbonate and hydroxide prices fell further this week, with some producers lowering prices to boost sales. Most downstream buyers were in no hurry to purchase material because they hold small volumes of lithium compounds in stock and expect lower prices in the following weeks.
The battery-grade lithium hydroxide spot market in China sharply decreased week on week, with prices dropping by 5,000 yuan per tonne due to good material supply and weak demand.
Fastmarkets last assessed the lithium hydroxide monohydrate, 56.5% LiOH.H2O min, battery grade, ex-works, spot price at 70,000-75,000 yuan per tonne on Thursday August 1, down from 75,000-80,000 yuan per tonne the previous week.
“Battery-grade lithium hydroxide prices continue falling on availability of material and low demand,” a buyer told Fastmakerts. “Even the micro-grade battery-grade lithium hydroxide prices have moved down.”
“Battery-grade lithium hydroxide prices have had a sharp decline this week and we’ve been selling our battery-grade material at the same spot price as the technical and industrial-grade material,” a lithium producer told Fastmarkets. “There is a high availability of material and not enough demand to absorb all battery-grade material in the market.”
Micronized battery-grade lithium-hydroxide spot prices typically trade at a premium of 5,000 yuan against the battery-grade lithium-hydroxide spot price assessed by Fastmarkets.
In times of market oversupply and low demand, micronized material typically loses its price premium because lithium producers are trying to boost sales, producers and consumers in China said.
Fastmarkets also reported a lower lithium carbonate, 99.5% Li2CO3 min, battery grade, exw domestic China, spot price on Thursday, assessing the market at 64,000-68,000 yuan per tonne, down from 67,000-70,000 yuan per tonne the previous week.
“Lithium producers in China are lowering prices to boost sales to increase cash flow on the current very slow demand,” a cathode market told Fastmarkets. “We have heard some lower prices at 60,000-64,000 yuan per tonne for battery-grade lithium carbonate, however, this might be companies speculating because most producers are still at 65,000 yuan per tonne.”
Cathode and battery makers spoken to by Fastmarkets confirmed that due to the current excess of battery-grade lithium compounds in China they are holding back on procuring more material and holding lower levels of stock due to the possibility of lower prices in the weeks to come.
In some cases, Fastmarkets was told that some of these downstream consumers are operating with just enough stock for a full week of production, which has increased their spot market activity because they are buying new material on a weekly basis.

Martim Facada

martim.facada@fastmarkets.com

Carrie Shi

Carrie.shi@fastmarkets.com

Published

Martim Facada

Carrie Shi

August 02, 2019

13:20 GMT

London, Shanghai