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week-on-week increase in domestic Chinese lithium technical grade prices since November 2022","first-week-on-week-increase-in-domestic-chinese-lithium-carbonate-prices-since-november-2022","article/first-week-on-week-increase-in-domestic-chinese-lithium-carbonate-prices-since-november-2022",{"_uid":557,"date":558,"tags":559,"editor":563,"content":573,"excerpt":668,"featured":50,"reporter":669,"_editable":673,"component":674,"seo_title":553,"categories":675,"visibility":681,"author_company":49,"featured_image":682,"seo_description":668,"author_full_name":49,"author_job_title":49,"formattedDate":687,"formattedArticleDate":688},"6da658e1-874d-42e4-88df-07cd35c30d52","2023-05-05 00:00",[560],{"slug":561,"name":562},"china","China",[564],{"slug":565,"name":566,"content":567},"didi-bostock","Didi Bostock",{"job_title":568,"image":569,"bio":571,"linkedin":572},"Editor - Energy Transition & Economics",{"filename":570},"https://a.storyblok.com/f/287943243085208/512x512/2c5ca5c1a3/didi-bostock.jpeg","Didi is the Energy Transition & Economics Editor at Benchmark, covering a broad range of markets across the energy transition. His remit spans from downstream sectors such as BESS and EVs, through to midstream such as new technologies and battery production, to upstream critical minerals mining. He also leads on financial analysis across these supply chains, alongside in-depth policy analysis.\n","https://www.linkedin.com/in/didi-bostock-656342198/",{"type":574,"content":575},"doc",[576,583,588,593,598,603,608,613,618,623,628,633,638,643,648,653,658,663],{"type":577,"attrs":578,"content":579},"paragraph",{"textAlign":49},[580],{"text":581,"type":582},"Benchmark’s Lithium Price Assessment registered the first week-on-week increase in Chinese domestic technical grade lithium carbonate since November 2022.","text",{"type":577,"attrs":584,"content":585},{"textAlign":49},[586],{"text":587,"type":582},"The rise sharpens hopes for lithium producers that the market may be in the earliest stages of exiting its six-month slump. ",{"type":577,"attrs":589,"content":590},{"textAlign":49},[591],{"text":592,"type":582},"Owing to impurities, technical-grade lithium carbonate needs to be processed before it can be used in batteries. ",{"type":577,"attrs":594,"content":595},{"textAlign":49},[596],{"text":597,"type":582},"However, the grade can sometimes act as a bellwether for wider lithium market shifts because small volumes are bought and sold by sentiment-driven traders.",{"type":577,"attrs":599,"content":600},{"textAlign":49},[601],{"text":602,"type":582},"However, Benchmark analyst Adam Megginson says the signal should be interpreted with caution, commenting that, “a lot of bulk midstream buyers aren’t convinced this is the bottom, so we can’t be sure the trend will continue.”",{"type":577,"attrs":604,"content":605},{"textAlign":49},[606],{"text":607,"type":582},"Prices for technical-grade carbonate increased 8.1% week-on-week between 26 April and 3 May 2023, according to Benchmark’s Lithium Price Assessment. The grade stood at RMB 167,500/tonne ($24,300) on 3 May.",{"type":577,"attrs":609,"content":610},{"textAlign":49},[611],{"text":612,"type":582},"Trader optimism dominates, supply chain buying still weak",{"type":577,"attrs":614,"content":615},{"textAlign":49},[616],{"text":617,"type":582},"The rise in technical carbonate owed partly to Chinese traders snapping up volumes before the Labour Day holidays between 1 and 5 May, which usually marks an informal halt to trading.",{"type":577,"attrs":619,"content":620},{"textAlign":49},[621],{"text":622,"type":582},"However, the grade had been recovering independently of pre-holiday buying, with a small uptick beginning in the previous week. This marked the first time any Chinese lithium grade as assessed by Benchmark had risen since November 2022.",{"type":577,"attrs":624,"content":625},{"textAlign":49},[626],{"text":627,"type":582},"So far, the trend in technical carbonate has reflected positive trader sentiment rather than any turnaround in demand along the lithium supply chain. Cell and cathode manufacturers remain cautious about purchasing large volumes given uncertainty around further price falls.",{"type":577,"attrs":629,"content":630},{"textAlign":49},[631],{"text":632,"type":582},"“Most people still seem pretty uncertain about a continued rise – it doesn’t sound like downstream demand has fully recovered and there’s still some cell inventory to get through,” commented Benchmark analyst Daisy Jennings-Gray.",{"type":577,"attrs":634,"content":635},{"textAlign":49},[636],{"text":637,"type":582},"Alongside improved trader sentiment, there have been hints of improving demand downstream. Cell and cathode manufacturers have reported destocking and lower inventory levels, with many stating that orders have exceeded production.",{"type":577,"attrs":639,"content":640},{"textAlign":49},[641],{"text":642,"type":582},"Midstream players say they may start replenishing inventories later in May. Their downstream customers are seeing end-product stocks dwindle and will likely need fresh inputs even before final consumer demand hits levels that would get lithium products moving more consistently through the supply chain.",{"type":577,"attrs":644,"content":645},{"textAlign":49},[646],{"text":647,"type":582},"Overall market down",{"type":577,"attrs":649,"content":650},{"textAlign":49},[651],{"text":652,"type":582},"Prices internationally continue to decline in a lagged response to the downtrend in China across Q1, and whilst seaborne Asia spot prices are still falling, they remain at a premium to the domestic market.",{"type":577,"attrs":654,"content":655},{"textAlign":49},[656],{"text":657,"type":582},"The latest Benchmark Lithium Price Index decreased 12.9% compared to the previous two-week assessment period, as international prices continue to fall in line with downward trends in the Chinese markets.",{"type":577,"attrs":659,"content":660},{"textAlign":49},[661],{"text":662,"type":582},"In the wider Asian markets, spot carbonate prices remained stable week-on-week after subdued trading activity while CIF Asia contract prices fell by 2.8% over 19 April to 3 May.",{"type":577,"attrs":664,"content":665},{"textAlign":49},[666],{"text":667,"type":582},"European and North American average carbonate prices fell in response to China and ex-China buyers capitalising on lower Chinese domestic pricing.Chinese technical lithium carbonate is still down 61% compared to 11 May 2022, standing roughly at September 2021 levels.","Benchmark’s Lithium Price Assessment registered the first week-on-week increase in Chinese domestic technical grade lithium carbonate since November 2022. The rise sharpens hopes for lithium producers that the market may be in the earliest stages of exiting its six-month slump. Owing to impurities, technical-grade lithium carbonate needs to be processed before it can be used […]",[670],{"slug":565,"name":566,"content":671},{"job_title":568,"image":672,"bio":571,"linkedin":572},{"filename":570},"\u003C!--#storyblok#{\"name\": \"article\", \"space\": \"\", \"uid\": \"6da658e1-874d-42e4-88df-07cd35c30d52\", \"id\": \"\"}-->","article",[676,679],{"slug":677,"name":678},"critical-minerals","Critical Minerals",{"slug":680,"name":8},"lithium","private",{"id":49,"alt":683,"name":683,"focus":683,"title":683,"source":683,"filename":684,"copyright":683,"fieldtype":685,"meta_data":686,"is_external_url":51},"","https://a.storyblok.com/f/287943243085208/ed2b955ee0/bm-xi-jinping-china-1.png","asset",{"alt":683,"title":683,"source":683,"copyright":683},"May 05, 2023","5th May 2023",[],[],1792688582914]