Lithium salt price pullback from tom green's blog

Different from the high enthusiasm for lithium resources, the price of lithium salt has been significantly loosened, and has gradually fallen and adjusted with shocks.

On May 19, the average price of battery-grade lithium carbonate in China was 461,500 RMB/ton, compared with the historical high of 502,500 RMB/ton in early April, with a price reduction of more than 40,000 RMB, or a drop of more than 8%.

The price correction of lithium salt is mainly due to the influence of policy supervision and the narrowing of the gap between supply and demand. With the release of new lithium salt production capacity at home and abroad, it is expected that the price of lithium carbonate is expected to fall to within 350,000 RMB/ton in 2022, and further fall in 2023.

In addition, the epidemic in China has had a certain impact on logistics, the external procurement of cathode material companies has decreased, and the wait-and-see mood has increased. Feedback upward to the cathode material side, the overall order volume was flat or slightly decreased, the demand for lithium salt spot market weakens, and the gap between supply and demand narrows.

The demand for lithium salt spot market weakens, and the gap between supply and demand narrows

The release of new production capacity has partially alleviated the tight supply and demand.

Internationally, the development of salt lake resources in South America entered the peak period last year, and the effective new production capacity of Albemarle, SQM, Orocobre and Ganfeng Lithium was gradually released.

At the same time, China’s salt lake + mica lithium extraction capacity will be released. On the one hand, the salt lake lithium extraction enterprises began to gradually increase the volume in March. It is expected that the output will increase significantly in June, and the output of lithium carbonate in Q2 will increase by 33.33% compared with that of Q1; With mining advantages, Jiangxi’s mica lithium extraction capacity is gradually released.

This wave of towsonbattery Lithium battery carbonate prices has skyrocketed. On the one hand, due to the strong downstream market demand, the supply and demand mismatch has been caused. On the other hand, some lithium salt suppliers and intermediary traders are hoarding and reluctant to sell, and capital speculation has driven up prices to create panic in market demand, which has contributed to the rise in lithium carbonate prices.

Lithium carbonate prices gradually fall

Based on this, relevant departments have taken action to control, from the perspectives of market supervision and national policies, it has played a certain role in curbing the current hype of lithium carbonate prices, prompting the price of lithium carbonate to gradually fall.

On the whole, lithium resources are limited by the development cycle, and a large number of projects are expected to be put into production in 2023 and later.

In the long run, with the release of new production capacity in other countries, the acceleration of the industrialization of lithium resources in China, the release of superimposed production capacity, and the decline in cost, the price of lithium salt will eventually return to a reasonable level.