Stable US Lithium Carbonate Market Amid Moderate Demand and Panama Canal Relaxation

Texas, USA: The US Lithium Carbonate market maintained stability in April 2024, with balanced market dynamics. Over the past few sessions, Lithium Carbonate prices have remained unchanged. Demand for Lithium Carbonate in the downstream lithium-ion battery sector was moderate. Amid an oversupply situation, sellers in South America have reduced their offered quotations for Lithium Carbonate.

In the United States, new vehicle sales experienced growth from January to March, indicating market resilience despite high-interest rates. However, the growth of electric vehicle sales slowed during the same period. Regarding supply, while low-water measures in Panama did not cause significant disruptions to container traffic, Panama Canal transit restrictions relaxed as the region entered the long-awaited rainy season. The Panama Canal Authority stated it would continue to relax low-water restrictions in response to rising rainfall levels.

Lithium Carbonate producers are incrementally increasing production, contributing to an anticipated rise in the import volume of Lithium Carbonate in April compared to March. This suggests an overall trend of recovery on the supply side. However, in the short run, there has been no notable shift in scattered sales sentiment within the Lithium Carbonate market, constraining the liquidity of spot market transactions during periods of low prices.

Additionally, the electric vehicle market has been significantly influenced by ongoing trade disputes between the U.S. and China, with sanctions and tariffs exacerbating the situation, and these impacts are expected to escalate further.

According to the IEA, electric vehicle sales are projected to continue increasing in most major markets this year, albeit at a slower pace. Global EV sales are expected to surpass 17 million units, representing over a fifth of total global vehicle sales. However, growth is anticipated to decelerate compared to 2023 in key markets. Nearly 14 million new EVs were registered last year, marking a 35% increase from 2022, with 95% of these sales occurring in China, Europe, and the US. China is forecasted to contribute over half of global EV sales this year, with a 25% increase from the previous year, surpassing 10 million units for the first time.

For the week ending April 26th, 2024, the assessed prices of Lithium Carbonate DDP USGC stood at USD 14,500 per tonne. According to the ChemAnalyst database, Lithium Carbonate prices are anticipated to demonstrate further stability in the upcoming weeks due to firm demand and the influx of high-priced Lithium Carbonate into the domestic market from the key exporters including Chile and others.