Trading Activities for Lithium Carbonate Soared

In the past couple of weeks, the prices of Lithium Carbonate observed a significant rebound in values of the offered quotations. Lithium Carbonate producers said the upstream smelters maintained a stable production and adequate supply. They added that the spot market transactions have also improved as the overseas and domestic market inquiries were healthier than during the COVID shutdown. Although the recovery in the queries from the end-use industries was slow and restricted within a rangebound, major EV automakers in China declared a planned shutdown for a couple of weeks to optimize the output in the production and assembly lines in their respective capacities.

In the last week, the released data showcases that the demand for the downstream Lithium Ferrous Phosphate (LFP) production sites was less than the previously anticipated surge in overall demand in the domestic market from the EV batteries industries. A major market source informed us that the new production cycle is likely to start soon in the crucial downstream facilities of Lithium Carbonate as the destocking activities are likely to end in the near term, coupled with an anticipated resumption of EV assembly lines in the northeast China.

Since the start of 2022, the Chinese authorities have presented various reforms to achieve the "dual carbon" target, with a series of measures to support the transition toward a greener economy by developing and promoting new energy vehicles. Last week, the Ministry of Ecology and Environment and six other state councils presented recent reforms and policies to encourage EVs in the public sector, deepening EVs' automobile circulation in China.

According to ChemAnalyst pricing intelligence, the cumulative offers for Lithium Carbonate in the Chinese domestic market have been a surge of +1.24% since June. The current market factors that support the quotations are the better buying activities and transactions at the spot market since the public and market movement resumed in China. Several market participants strongly believe that the participation of the overseas players is likely to surge soon as the estimated surge in the domestic demand is likely to bolster the domestic quotations. At the same time, the overseas participants are likely to procure optimum quantity at feasible prices when the quotation for Lithium Hydroxide likely rebounds in the upcoming terms.