For the Quarter Ending June 2022
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.
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.
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.
For the Quarter Ending March 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.
During Q4 2021, the Lithium Carbonate market in North America witnessed persistent growth. The factors impacting the offers of Lithium Carbonate in Q3 prevailed its impact in the current quarter. Whereas, the congestion from Northeast Asian ports and the limited availability of freight vessels induced additional cost support and delayed the deliveries of Lithium Carbonate to the US domestic market. As a ripple effect, the offers of Lithium Carbonate soared by 38.74% quarter on quarter, and the DDP USGC (USA) prices were assessed at USD 28200 per tonne during the Q4 ending.
In the fourth quarter of 2021, the Asia Lithium Carbonate market maintained its persistent growth, and the prices exceeded by 33.34% compared to the estimated projected offers by the December end. The surge in the quotations was majorly focused in the second half of the quarter. As the world transitioned towards a greener economy, numerous global EV producers raced to secure the supplies of Lithium Carbonate, a key component of EV battery manufacturing. As a ripple effect, the offers for Lithium Carbonate in Northeast Asia surged by 24.82% in the Q4 and the Ex-Works Shenzhen (China) discussion were settled at USD 35200 per tonne during the quarter ending.
After the COP 26 meeting held in Glasgow, numerous EV battery manufacturers were eager to ensure long-term supplies of Lithium in the fourth quarter. Whereas, the Chilean authorities recently announced to form state-owned Lithium miners to manage the country’s Lithium Triangle. However, as the demand exceeded the domestic supply outlook it forced the producers to raise the quotations for Lithium Carbonate by 50.87% compared to the starting of the fourth quarter. As a ripple effect, the FOB San Antonio discussions for Lithium Carbonate Battery Grade were assessed at USD 28050 per tonne, during the quarter ending.