China's lithium ore prices rose yesterday. At the start of the month, most lithium salt producers adopted a wait-and-see approach, while spot market liquidity remained tight. Large lithium salt producers moved quickly to lock in supply, having already begun securing feedstock for September. Operating rates at tolling plants in northern China remained relatively low, based on Mysteel's observation.
For lithium carbonate, the futures price continued to rebound after bottoming out, while the price hike has again slowed the spot transactions. Supported by improving macro sentiment and rising downstream production schedules, the market prices corrected after digesting news of mining restarts. At the same time, July spodumene supply is being constrained by tight overseas lithium ore supply. Going forward, attention should be paid to the pace of Zimbabwean ore arrivals in the third quarter and the supply flexibility they may bring, as well as demand growth and warrants drawdowns. Prices are expected to remain range-bound.
