In the last week of September, the Lithium Carbonate market in China witnessed a significant uptrend in the offered quotations. The offers for Lithium Carbonate were up by +1.36%, significantly ahead of the upcoming golden week holidays in China. In terms of supply, the spot market is observing significant pressure from the downstream industries, concluding in a slight tightness for the overall availability of Lithium Carbonate in the Chinese spot market. At the same time, the major manufacturers more actively responded to long-term contractual inquiries as the inquiries from the overseas market poured ahead of the upcoming holidays. In addition, due to the COVID uncertainties, transportation has remained restricted, resulting in slower shipments and export of Lithium Carbonate to overseas markets.

On the domestic demand side, the ramp-up rate of operations at downstream facilities has consistently improved after the power rationing issue was resolved. It proportionally has increased the demand compared to the start of the month. In addition, with the arrival of the fourth quarter, downstream energy facilities have started preparing to store the Lithium salt raw materials for the year-end, which led to improved procurement performance. Therefore, due to strong demand and weak supply, the prices of Lithium Carbonate consistently soared.

Whereas the derivatives market of Lithium Hydroxide has remained stable, despite the cost support from the upstream Lithium Carbonate remained strong. The enthusiasm amongst the downstream market participants remained buoyed, whereas the cost support has prevailed in the vital battery chemicals such as Lithium Hexafluorophosphate and Ferrous Lithium Phosphate.

As per the ChemAnalyst pricing intelligence, the Lithium Carbonate market was likely to remain subdued amidst the week-long national holidays in China. As transportation activities remained restricted and the spot discussions remained suppressed. However, few suppliers entertained long-term contractual inquiries. Although, as the market resumed, the quotes for Lithium Carbonate were likely to continue upward.