Lithium Carbonate Prices Plunge Globally Amidst Weakening Demand

Texas (USA): The Lithium Carbonate market across the globe is experiencing a slowdown impacted by a wide range of factors. The USA and Europe markets have observed a slowdown this month as the demand for the product continues to decline ahead of the prime summer vacation season.

Lithium Carbonate spot prices in Europe and the United States continued to fall across the board, following the lead of the East Asian market and considering the region's periodic slowdown in consumer demand due to the regular summer slump.

Amidst the decreasing quotations for Lithium Carbonate, strong reluctance from the consumer side has been observed for fresh purchases. The higher the pessimistic feeling, the lower the buying appetite since customers fear missing out on future price reductions.

The lackluster performance of downstream businesses across the respective market, along with the persisting challenges of inflation and slow economic development, has thrown a shadow over Lithium Carbonate pricing.

According to the market participants in the European region, the market has softened, though there is still some buying activity at a premium to current spot prices, such as small quantities delivered to grease manufacturers who do not have the same purchasing power as battery value chain participants in East Asia.

According to the source, the market in Europe is now quite calm, with pricing gaps in the East Asian market being low due to fierce competition to sell units amid slow demand, and the buyers hold more bargaining power at the moment.

In August, the prices of Lithium Carbonate observed a continuous decline as week-on-week price drops were registered. In the week ending on 18th August 2023, Lithium Carbonate Battery Grade DDP USGC prices dropped by 5.4% from the previous week, settling at USD 43500/MT.

Similarly, in China, the spot prices of Lithium Carbonate Battery Grade dropped by 5.7% from the previous week and settled at USD 33000/MT in the week ending on 18th August 2023.

Also, according to a few analysts, the consumer market is panicking due to the probable scarcity of lithium carbonate for electric vehicle batteries, and market participants are racing to purchase stocks in a distressed and panicked competition. Chilean market competitors have decreased their profit margins to compete with China for additional consumers.

According to the ChemAnalyst database, the Lithium Carbonate market in the USA is presumed to demonstrate further price decline in the upcoming months as cathode manufacturers are reliant on a long-term supply of Lithium Carbonate or supply is given by clients since cathode manufacturers struggle to move the high manufacturing costs associated with lithium pricing to their consumers.