It is expected that China's lithium carbonate market will be short supplied in April, with booming downstream players production scheduling, per Mysteel survey.
Mysteel survey showed that China's LFP and ternary cathode material production is projected to rise 25.47% and 2.61% month on month respectively at 200,500 tonnes and 55,400 tonnes in April. The LFP sector is likely to outperform with mounting downstream demand, especially the energy storage market. In addition, some newly commissioned LFP producers will start to deliver the orders.
On the supply side, domestic lithium carbonate production is estimated to jump 15.60% MoM at 51,500 tonnes in April, with the smelters in Jiangxi Province resuming normal production after the environmental projection impact fades, and new spodumene-based production lines coming on stream, lifting the province's lithium carbonate production by 4,850 tonnes.
Source: Mysteel
From the raw material perspective, the production growth of spodumene and lepidolite-based lithium carbonate is estimated at 3,050 tonnes and 2,400 tonnes respectively.
Meanwhile, the smelters held a total of 17,540 tonnes of lithium carbonate inventory as of end-March, with fewer available for the spot market.
The lithium carbonate imports from Chile, on the other hand, are projected to remain flat from that in February.
Taken together, China's total lithium carbonate supply is likely to rise to 66,000 tonnes in April, leading to a supply shortage of some 4,700 tonnes.
Written by Aggie Hu, huchenying@mysteel.com