A quick hit from Bloomberg, April 26:
- Battery material had sunk more than 70% since November’s peak
- Major producers Ganfeng, Tianqi will report earnings this week
Lithium prices in China halted a five-month slide on signs that demand growth among battery makers may finally gather pace.
Chinese lithium carbonate ticked up 1.2% Wednesday, the first gain this year. Prices had tumbled more than 70% since mid-November as companies across the battery supply chain drew down inventories rather than buying afresh, while an end to Chinese electric-vehicle subsidies curtailed demand.
Data now point to improved EV sales prospects, while lithium stockpiles have been thinning.
“There’s some pickup in buying from traders who think prices have bottomed, which supported lithium this week,” said Jesline Tang, a non-ferrous metals pricing analyst at S&P Global Commodity Insights. “There’s also talk of declining inventories at battery makers, which could drive restocking activity.”
Prices edged up to 167,500 yuan a ton on Wednesday, according to data from Asian Metal Inc.
That may hint at respite for some smaller Chinese producers of the material, which have seen profit margins dented by the price crash. Yet even with this year’s collapse, lithium carbonate remains four times more expensive than in 2020....
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