China's lithium salt producers continued to build stocks last week, pricing on dips, with their price acceptance gradually shifting lower. The marketable inventories held by suppliers continued to decline, while some leading traders showed reluctance to sell, further compressing processing margins for lithium ore.
On the fundamentals, data from the China Passenger Car Association shows that retail sales of electric passenger vehicles in China reached 285,000 units during March 1-15, 2026, down 28% compared to the same period last year. The sluggish EV sales have reignited market concerns over weakening power battery demand.
In the spot market, downstream buyers made significant purchases near the Yuan 140,000/tonne level, leading to inventory drawdowns in the trading segment and providing some price support. Going forward, the sustainability of this buying momentum remains a key variable to watch.
