China's lithium carbonate buying slows in September after 50% price surge

Spot buying activity for battery grade lithium carbonate has slowed in China's domestic market in September as prices have surged more than 50% since the start of August, market sources said Sept. 8.

S&P Global Platts assessed battery grade lithium carbonate at Yuan 138,000/mt on a delivered, duty-paid China basis Sept. 7, up from Yuan 91,500/mt on Aug. 2.

Market sources said liquidity has thinned since active procurement from both downstream consumers and traders for September was largely concluded.

Spot buying for lithium carbonate in the Chinese market is typically concentrated toward the end of the month, with consumers procuring extra cargoes based on their forward month production needs, a producer said. Active spot demand will likely return from the second half of September as buyers look to secure supply for October, the source added.

Any remaining spot demand for September delivery cargoes is likely to be from traders looking to stockpile volumes on speculative interest, a Chinese trader said. The huge jump in prices over the past month has narrowed reselling margins, and traders are opting to await greater clarity on October lithium iron phosphate (LFP) battery production rates before returning to the spot market, the source added.

Traded levels for battery grade lithium carbonate were heard in the range of Yuan 135,000-140,000/mt earlier in the week starting Sept. 6,, although volume details were scant.

Some sellers have hiked spot offers to Yuan 150,000/mt, although there was a lack of buying interest at that level.

Sellers with excess spot cargoes are generally not in a rush to sell as expectations are for higher price levels toward October, and as such are quoting high prices for September delivery, a cathode maker source said.