China’s lithium carbonate prices have surged amidst the recent volatility in the futures market, but there is still caution in the air due to weak market fundamentals. On the other hand, hydroxide prices have faced a decline due to low spot demand.
The CIF China, Japan, and Korea (CJK) market has seen limited trading activity and weak demand, leading to a decrease in hydroxide prices. In the US and Europe, market activity has been slow with prices remaining mostly stable, although European carbonate prices saw a slight decrease.
After the National Day holiday in China, lithium carbonate prices saw an increase following the volatility in the futures market. However, despite the uptrend, market fundamentals continue to be weak. The futures contract for lithium carbonate on the Guangzhou Futures Exchange (GFEX) opened high but then steadily decreased, closing at a lower price by Thursday.
While spot lithium carbonate prices have been following the futures market volatility, market fundamentals remain weak due to oversupply. Despite the volatility, the spot market has been active with producers selling and consumers buying based on the fluctuating futures prices.
In the US, Albemarle conducted an auction for battery-grade lithium carbonate, with the price settled at a certain level. The spot price range for lithium carbonate in domestic China has seen an increase from the previous assessment due to market dynamics.
On the other hand, lithium hydroxide prices have been under pressure due to muted spot demand, with consumers relying more on long-term deliveries. The spot price range for lithium hydroxide in domestic China has narrowed downward from the previous assessment.
Spodumene prices have also faced downward pressure as a result of weakening GFEX prices. Buyers have become more cautious, leading to lower offer prices from miners and limited concluded deals.
In the CIF CJK market, lithium carbonate prices have remained stable while hydroxide prices have seen a decline. Consumer demand has been low, with slow activity in the spot market due to public holidays in China and South Korea.
The European market has shown mixed trends, with carbonate prices dipping and hydroxide prices staying steady. Lower freight rates from Asia to Europe have made exporting more competitive, but sluggish demand has prevented any significant uptick in sales.
In the US, lithium spot market prices have remained unchanged over the past week. Both carbonate and hydroxide prices have stayed stable, with a small deal reported for carbonate falling below the minimum tonnage requirement.
Overall, the lithium market continues to navigate through various challenges, including market volatility, weak fundamentals, and muted demand. Market participants are closely monitoring price developments and cautiously approaching future transactions.