For the Quarter Ending March 2023
North America
In the first quarter of 2023, the market of Lithium Carbonate plunged in the US domestic market. In January, the market prices dropped amidst restricted market activities in the Asian region, and the regional market competition dropped amongst the downstream EV manufacturers. In February, the prices tumbled further amidst a wait-and-see consumer market attitude in the region as the Asian market participants reported a drop in electric vehicle sales and built-up inventories. Whereas in March, due to a decline in new orders and slipping export sales, the market prices of Lithium Carbonate slipped down in the region. Thus, the Lithium Carbonate Battery Grade DDP USGC settled at USD 66208 per tonne at the end of Q1 2023.
APAC
In the first quarter of 2023, the offered quotations for Lithium Carbonate dropped considerably in the Chinese domestic market. In the first month of Q1, the prices dropped amid the end of NEV subsidies, so downstream players were cautious about procuring new batches. In the second month of Q1, built-up inventories of Lithium Carbonate were reported in the region. The outlook remained weak, and the market sentiments remained in negative territory due to a drop in electric vehicle sales. In the last month of Q1, the market prices declined further due to high inventories in the region, even though the lithium salt plants reduced production. The demand from the downstream battery manufacturing industries was weak, and the goods were sold at lower prices amidst an oversupply situation. Thus the prices of Lithium Carbonate Ex-Shenzhen settled at USD 47267 per tonne at the end of Q1 2023.
Europe
In the first quarter of 2023, the overall market prices of Lithium Carbonate rode the downward trajectory in the Belgian domestic market. In January 2023, the offered quotes plunged, moving identically to the Asian market. In addition, the rising inflation and energy prices kept the operating rates restricted. In February, the prices dropped due to weaker demand from the Asian market players leading to restricted exports of the product and uncertainties regarding the economy. In March, the prices dropped further due to lacking market competitiveness from the Asian markets and the wait-and-see consumer market sentiments across the globe. Thus, the offered quotes for Lithium Carbonate Battery Grade DDP Antwerp settled at USD 66171 per tonne at the end of 2023.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Lithium Carbonate market in North America persists on an upward trajectory, although the growth pace has dropped. This development has been majorly attributed to the slowdown in EV sales in the APAC region. The overall market sentiments for Lithium Carbonate offers remained constant on a bullish run for the majority of the first half. In November, the discussions were consistently moved upwards, and the cost support from the feedstock was sufficient to support the offered quotations in the domestic market. On a year-on-year basis, numerous market participants, such as Albemarle, stated that the organization had soared its profits by seven folds during the third quarter of 2022. As a ripple effect, the DDP USGC discussion for Lithium Carbonate was assessed at USD 75575 per tonne in November 2022.
Asia Pacific
Overall, the Lithium Carbonate market in the Asia Pacific region observed a slight slowdown in the latter half of the quarter. The offers for Lithium Carbonate traced a downward trajectory for the second term in 2022 after rallying 1200% since the levels in 2019. The market has been primarily impacted by the revocation of the state-sponsored New Energy Vehicle (NEV) subsidies. That concerned the domestic manufacturers regarding offtakes for cathode materials to counter the impact of the downstream player's slowdown of the procurement of raw material, impacting the offers for Lithium Carbonate in the domestic market. At the same time, the far-east Asian market players have restricted the cash outflow from the organization to showcase a better financial performance on the annual report. In response, inquiries for new procurement have dropped in the fourth quarter, and the CIF Busan discussions for Lithium Carbonate were assessed at USD 80149 per tonne in December 2022.
Europe
Overall, the Lithium Carbonate market in the European region has witnessed mixed sentiments throughout the fourth quarter of 2022. In the first month, the offers have remained bullish on an upward trajectory prompted by the market rebound post-summer holidays. However, the drop in sales of EVs in APAC and soaring inflation with hiked interest rates have made the market players reluctant towards hasty buying streaks. In addition, the increment in the energy cost has substantially impacted the operating rates at the manufacturing facilities, curtailing the offtakes volumes by a considerable margin. In response, the DDP Antwerp discussions for Lithium Carbonate were assessed at USD 75975 per tonne in December 2022.
In the third quarter of 2022, the Lithium Carbonate market witnessed a staggering upwards trend. This development is majorly attributed to the consistent soaring dynamics of the EVs market in the North American region. The offtakes have remained constant, and the availability in the spot market has remained staggering. According to major market players, the delivery date has slipped to the end of the first quarter of 2023 for the overseas market participants. In the current supply-demand scenario, it has been estimated that to match rising demand, the expansion of 59 new mines with a minimum capacity of 45KTPA was required, with proper recycling infrastructure by 2035. Although, in the current market dynamics majority of the supply was concentrated toward contractual deliveries against the tight supply outlook. As a ripple effect, the DDP USGC discussions for Lithium Carbonate were assessed at USD 72960 per tonne during the quarter ending September 2022.
Overall the Lithium Carbonate market in the Asia Pacific region remained bullish in the domestic market. Thus development is majorly attributed to the mismatched supply-demand dynamics of Lithium Carbonate. The demand constantly inclined against the depreciating supply outlook as the operations at several facilities were curtailed. At the same time, Tianqui and Yahua Lithium suspended their operations temporarily. As a ripple effect, the supply was pressurized, whereas the demand soared tremendously ahead of the peak rush in the Chinese domestic market. The Ex-Shenzhen discussions for Lithium Carbonate were assessed at USD 72994 per tonne. Most quotes in domestic currency growth do not reflect in USD amidst the depreciation of CNY against the USD in the third quarter.
Overall the Lithium Carbonate market in the European region was muted for the majority of the third quarter due to the prolonged summer holidays. The spot arbitrage and operation at the downstream manufacturing facilities remained subdued, and the offers for the Lithium Carbonate on DDP Antwerp were assessed at USD 74622 per tonne during the quarter ending in September. In mid-September, as the market activities across Northwest Europe resumed, the European Union passed the "Critical Raw Material Act" to secure the supply of Lithium and rare earth metal. Its demand is anticipated to increase by five folds by 2030 to replace oil & gas in an ambition to become the climate-neutral continent. The Critical Raw Material Act will help focus on strategic applications, networking amongst the European agencies, a more resilient supply chain, and a solid & sustainable level playing field.
