Lithium is going to reverse, Analysts believe that the freefall in the price will reverse. As demand for EV & power storage is expect to rise up from this quarter ahead.
Lithium prices in China have plummeted since the end of the previous year due to slow demand in the world’s biggest EV market. However, there are indicators that the price decrease may be coming to a stop shortly.
“The inventory in the chain of custody is currently at a low level. And with the recovery of downstream demands in the 2 quarter, lithium prices could stop falling and stabilise,” said brokerage Huaan Securities.
China’s biggest lithium manufacturers, including Tianqi Lithium & Ganfeng Lithium, reportedly agreed previous month to set a minimum prices of 250,000 yuan, or $36,380, per tonne of lithium carbonate in order to prevent the price drop. Lithium prices have dropped by more than half since November, with the decline intensifying in recent weeks.
As Chinese dealers hurried to sell rising stocks, offers reportedly decreased to 260,000 yuan per tonne.
Companies in China’s primary lithium-producing centre have also reportedly reduced lithium output as a result of the recent price drop and lacklustre demand for EVs. According to local media earlier this month.
Chinese publication The Paper reported, certain unknown companies, including significant ones, have cut supplies in Yichun, China’s top lithium-producing hub.
Earlier this year, allegations surfaced that China had moved to monitor the harvesting of lithium from lepidolite. The most common lithium-bearing minerals but a secondary sources of this metals, near Yichun, dubbed the ‘Asian Lithium Capital’ due to its massive lithium deposits.
Analysts predict that the lithium market will experience price hikes in the mid & long period. As demands for lithium in the power transition grows.
China leads the worldwide lithium-ion batteries supply chain and accounts for a substantial portion of global lithium supplies.