US Lithium Carbonate Market Faces Struggle in October 2023 Amid Tepid Terminal Procurement

Texas, USA: The US Lithium Carbonate market has demonstrated a bearish trend in October 2023 amid weak demand from downstream industries. This downward pattern is a result of a challenging trade-off between inventory management and the desire to secure profit margins from price drops. Consumers have taken a "wait-and-see" attitude to improving their procurement techniques. This carefulness is the result of the delicate interaction between market players and customer sentiments that has shaped the current Lithium Carbonate price scenario in the United States.

Post the mid-autumn holiday week in China, the market participants have kept an observant approach to see any signs of demand recovery in European and North American markets; however, the demand outlook has continued to remain weak, and the prices of Lithium Carbonate have continued to drop. Despite the current context of low orders and lengthy downstream procurement transactions, large-scale operations have yet to begin, and demand for Lithium Carbonate remains low.

The prices of Lithium Carbonate for Battery Grade DDP USGC have declined on an average 3.7% week-on-week basis. Furthermore, as the prices declined, the downstream markets of other lithium salts, such as lithium hydroxide and lithium hexafluorophosphate, have plummeted as the production costs have tumbled on a week-on-week basis. Also, the sellers in the cathode manufacturing industry reported abundant material availability.

According to a second international market participant, there is still some weakness in other markets that has yet to filter through to Europe and the US regions following previous decreases in the domestic Chinese market, and buyers in Europe continue to rely primarily on long-term contracts. Additionally, China's spot market fundamentals have remained weak as the buyers were purchasing in low volumes.

According to the ChemAnalyst database, the prices of Lithium Carbonate are anticipated to improve in the coming months, particularly in the fourth quarter of this year. This forecast reflects the expected seasonal increase in demand for Lithium Carbonate as well as an improvement in overall market conditions due to the possibility of a new round of restocking in the region.

The Lithium Carbonate pricing in the United States may have fallen due to cautious customer behavior, complicated market dynamics, and poor inventory management. Increased demand, particularly in the Electric Vehicle (EV) industry for battery manufacturing, is likely to help the market recover. Furthermore, the introduction of Lithium Carbonate futures trading into the market is expected to provide market transparency and stability, supporting enterprises in addressing price issues.