Monthly Lithium Market Report May 2019
2019-07-15 17:50:53 【Print】
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Market Highlights
During the first ten days of May, the Chinese LMO and LFP markets saw active trading activities, and accordingly demand for industrial grade lithium carbonate grew. Meanwhile, as some large-sized producers suspended production for equipment maintenance in April, supply of industrial grade lithium carbonate seemed a little tight and prices for the material moved up accordingly. Battery grade lithium carbonate producers followed suit to raise their quotations, but actual transaction prices for battery grade lithium carbonate did not move up slightly until mid May. Regarding lithium hydroxide, the high-nickel LNCMO market did not run as well as expected and downstream demand for lithium hydroxide became weak accordingly, leading to dropping lithium hydroxide prices. Regarding lithium metal, as some downstream pharmaceutical producers suspended or cut production affected by environmental inspections, demand for lithium metal shrank and prices for the material dropped slightly.
By late May, the interim period for the 2019 Chinese subsidy policy on new energy vehicles had passed by two thirds, and consumers from this market had finished their expedited production of products which were still subject to old subsidies before the interim period expires in late June. As a result, the LNCMO market saw limited transactions. Regarding LCO, As the Chinese mobile phone market was nearly saturated, the 3C electronics market ran quietly in May. Since late May, the 3C market was entering the traditional off season, and its demand for LCO shrank. With cobalt prices beginning to decrease continuously in late May, prices for LNCMO and LCO both dropped under a background of sluggish transactions.
During the first ten days of May, the Chinese LMO and LFP markets saw active trading activities, and accordingly demand for industrial grade lithium carbonate grew. Meanwhile, as some large-sized producers suspended production for equipment maintenance in April, supply of industrial grade lithium carbonate seemed a little tight and prices for the material moved up accordingly. Battery grade lithium carbonate producers followed suit to raise their quotations, but actual transaction prices for battery grade lithium carbonate did not move up slightly until mid May. Regarding lithium hydroxide, the high-nickel LNCMO market did not run as well as expected and downstream demand for lithium hydroxide became weak accordingly, leading to dropping lithium hydroxide prices. Regarding lithium metal, as some downstream pharmaceutical producers suspended or cut production affected by environmental inspections, demand for lithium metal shrank and prices for the material dropped slightly.
By late May, the interim period for the 2019 Chinese subsidy policy on new energy vehicles had passed by two thirds, and consumers from this market had finished their expedited production of products which were still subject to old subsidies before the interim period expires in late June. As a result, the LNCMO market saw limited transactions. Regarding LCO, As the Chinese mobile phone market was nearly saturated, the 3C electronics market ran quietly in May. Since late May, the 3C market was entering the traditional off season, and its demand for LCO shrank. With cobalt prices beginning to decrease continuously in late May, prices for LNCMO and LCO both dropped under a background of sluggish transactions.
