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.
For the Quarter Ending September 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending June 2022
North America
Overall, the Lithium Carbonate market in the North American region majorly remains affected by the conflict in the eastern European region. The retaliatory sanctions on Russia by the US, and the EU, with the help of several other nations, hindered the supply of the critical essential raw material that was used in the production of EV battery raw materials. At the same time, the resurgence of COVID in China has kept the benchmark prices for Lithium Carbonate sluggish in the international market. Albemarle, a major specialty chemical company in the US, is investing heavily in the South American market to ensure a long-term supply of lithium ores. As a ripple effect, the discussions for Lithium Carbonate for DDP USGC were assessed at USD 67200 per tonne during the quarter ending in June 2022.
Asia Pacific
In the second quarter of 2022, the Lithium Carbonate market in the Asia Pacific region observed a significant downtrend amidst the sudden drop in domestic inquiries. After the COVID resurfaced in China, EV production took a tremendous toll as the disruption in the downstream supply chain impacted the vital raw materials market due to a sudden plunge in the overall demand outlook in China. Several Electric Vehicle facilities reduced their output, and numerous sites halted their production due to insufficient supplies of the essential auto parts. The overall development due to COVID, coupled with the Chinese authorities' probe over the rising prices of Lithium, challenges the sustainable transition toward a greener economy. As a ripple effect, the Ex-Shenzhen discussion on Lithium Carbonate was assessed at USD 72155 per tonne during the end of Q2 2022.
Europe
During the second quarter of 2022, the overall sentiments for Lithium Carbonate in the European market observed a bearish trend in the offered quotations. This development is majorly attributed to the retaliatory measures against Russia by the US, and the EU, with the help of several other nations, which hindered the supply of the critical essential upstream materials that were used in the production of EV battery raw materials. At the same time, the supplies from China were also delayed as operations were restricted amidst the resurgence of COVID in China. However, the benchmark prices for Lithium Carbonate remain in a downtrend. Therefore, the DDP Antwerp discussions for Lithium Carbonate were settled at USD 67800 per tonne during the quarter ending in June 2022.
In the first quarter of 2022, the Lithium Carbonate market sentiments maintained bullish identical to the last quarter. After the COP 26 discussion concluding, a rapid transition towards a greener economy was observed. The domestic players rushed to capture the larger market share and poured the investment into developing new projects and technology for the Lithium Carbonate manufacturing. The demand outlook strengthened exponentially and outweighed the supply capabilities, creating a significant delivery lag and an unprecedented surge in the producer's quotations. As a ripple effect, the DDP USGC (USA) discussions for Lithium Carbonate averaged USD 59000 per tonne during the quarter ending March 2022.
Since July 2021, the Lithium Carbonate market in the Asia Pacific has consistently maintained bullish sentiments for three quarters straight. The prices of Lithium Carbonate achieved unprecedented gains straight for nine months. In the first quarter of 2022, major producers of Lithium Carbonate in China put their facilities on maintenance ahead of the Lunar New Year Holidays. Although the production resumed by mid-February, the operational rates didn't reach total capacity until end-February. In response, it widened the gap between the supply-demand as the inquiries dominated the supply capabilities in the Chinese domestic market. Therefore, the Ex-Shenzhen discussions for the Lithium Carbonate by the quarter ending settled at USD 74750 per tonne in March 2022.
During the first quarter of 2022, the Lithium Carbonate in the European market consistently soared amidst the tightened supply against the exceptional demand outlook. The market competitiveness soared ahead of the Chinese Lunar New Year holidays as the arbitrage will remain disturbed for two weeks. Whereas in the second half, the conflict in the eastern European region hindered the domestic production capabilities as the sturdy stance of the European authorities restricted its trade with Russia impacted the supplies of raw materials. In addition, after the conflict broke out between Russia and Ukraine, the Suez canal authorities decided to raise the tax rates by 5%, which implemented an additional cost to the supplies from the Asia Pacific market.
