Lithium Carbonate Prices in Asia Pacific Drop Amidst Lunar New Year Holidays
- 30-Jan-2023 1:40 PM
- Journalist: Gabreilla Figueroa
Singapore: The Lithium market, including Lithium Carbonate and Lithium Hydroxide in the Asia Pacific region, has still in a downturn, and the prices have observed a consistent drop over the past few weeks in China. The attitude of the last month has persisted against the backdrop of curtailed demand and sufficient inventories amongst the Cathode Active Material manufacturers in the Chinese domestic market. However, the inquiries from the far east Asian markets, such as South Korea and Japan, have improved over the past few weeks after remaining muted in the previous two months.
In recent terms, especially after the revocation of the New Energy Vehicle (NEV) based subsidies last month. The Lithium Carbonate and Lithium Hydroxide markets in China were majorly dependent and extremely focused on export volumes. However, the logistics companies have already suspended operations, and most of the manufacturers have also temporarily suspended production sites in response to the Lunar New Year holidays and to clear the backlogs before the holidays. As a ripple effect, the loading and offloading activities at ports have become limited.
However, those Lithium Carbonate and Lithium Hydroxide manufacturers face high inventory pressure levels and are keen to export Lithium Carbonate volumes to overseas markets. Hence, further impacting the offers of Lithium Carbonate in the domestic market. As per a major market source, the Cathode Active Materials manufacturers have sufficient inventories to sustain production in the first quarter of 2023, impacting the number of new inquiries for Lithium Carbonate and Lithium Hydroxide in the Chinese domestic market.
As per the ChemAnalyst Pricing Intelligence, the Lithium Carbonate manufacturers were keen to make shipments and export to the overseas market. This rigorous viewpoint amongst the manufacturers is currently holding the Lithium Carbonate market with a firm attitude, besides discouraging the downstream EV battery cathode manufacturers from restocking for the upcoming short outlook. Therefore, it is anticipated that the inventory levels amongst the Lithium Smelters will soar, and the offers will remain either flat or drop in the Asia Pacific region, even after the market activities resume post the Lunar New Year holidays in China.