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Short Term Supply And Demand Reversal Of Lithium Carbonate in April

Classification:
Industry information
Author:
BJR
2023/05/19 10:00

In April, China's lithium carbonate production reached 27333 tons, a 9% decrease compared to the previous month.

Due to the warming temperature this month, the production of salt lakes has increased; However, due to cost issues, the production of pyroxene and mica has decreased and increased; At the same time, the recycling market is weak, and production has decreased year-on-year.

Therefore, although the increase in salt lakes is not as significant as the reduction in other smelting ends, resulting in a decrease in overall production compared to the previous month.

It is expected that in May, with the rebound of spot prices, the bullish sentiment in the spot market will be intense, coupled with a bullish outlook on future demand, so the operating rate may rise.

In the side of Battery Grade Lithium Carbonate

On the supply side, due to some pyroxene smelting enterprises starting maintenance, coupled with mica smelting enterprises reducing production due to insufficient ore materials, the overall output decreased month on month.

It is expected that in May, mica smelting enterprises will continue to reduce production due to a shortage of mineral materials. However, due to the recovery of pyroxene smelting enterprises from maintenance and the hedging of salt lake production capacity climbing, the overall production of battery grade lithium carbonate in the market will slightly increase.

On the demand side, there is still no significant improvement in terminal demand, and downstream restocking willingness is not strong, with the main focus being on just needed restocking. Entering May, the downstream operating rate slightly improved, and the price difference between industrial carbon and electric carbon tends to be rational, with some industrial carbon purchase orders shifting to electric carbon.

In terms of imports and exports, the market's import sentiment was weak in April due to the impact of a large number of arrivals in March. It is expected that in May, as domestic manufacturers become increasingly reluctant to sell, there will be a strong demand for imported carbon, and there may be a certain increase in imports.

In the side of Industrial Grade Lithium Carbonate

On the supply side, although affected by rising temperatures, the production of salt lakes has increased; However, due to the inverted cost of raw materials and lithium salt prices, as well as the insufficient supply of mineral materials in Jiangxi, some enterprises have been forced to reduce production and shut down, resulting in a month on month decrease in industrial carbon production in April.

It is expected that Jiangxi enterprises will maintain their production reduction expectations in May, but will be affected by the increase in salt lake production due to rising temperatures.

On the demand side, although the overall downstream demand did not show significant improvement in April and there was no significant increase in stocking willingness, due to the large price difference between industrial carbon and electric carbon, industrial carbon squeezed out some of the electric carbon market, resulting in a rapid growth in industrial carbon demand in April.