Argus-assessed prices for 6pc grade lithium concentrate (spodumene) dropped to $815-855/t cif China on 25 March from $830-880/t cif China a week earlier. Most consumers managed to press down spodumene purchase prices, with salts prices on a downward trend since early February.

Prices for 99.5pc grade lithium carbonate were assessed at Yn73,400-75,500/t ex-works on 25 March, stable from 24 March and down from Yn73,500-75,500/t ex-works on 20 March. China has cancelled the requirement for compulsory installation of energy storage devices in new energy projects and this, coupled with higher US tariffs on Chinese imports, has weighed on lithium demand growth and pressured carbonate prices. A 100t deal was concluded at Yn73,600/t ex-works on 25 March. A few producers stopped offering and were reluctant to sell carbonate as selling at current prices would accrue negative profit margins, but they cannot halt the price drops because there is abundant supply.

The most-traded May lithium carbonate contracts on Guangzhou Futures Exchange rebounded to Yn73,800/t on 25 March from Yn73,260/t on 20 March, but they were still down from Yn75,400/t on 18 March and Yn76,800/t on 6 March, with traded quantities totalling 101,240t on 25 March.

Import prices for 99.5pc grade lithium carbonate were unchanged from 20 March at $9.08-9.20/kg cif China on 25 March as most suppliers held prices at the current level temporarily in the face of thinner profit margins.

Prices for 60pc grade lithium cobalt oxide (LCO) held at Yn205-220/kg ex-works on 25 March from 20 March because of the stable lithium carbonate and cobalt tetroxide feedstock prices.

Argus-assessed prices for 56.5pc grade hydroxide inched down to Yn68,200-77,200/t ex-works on 25 March from Yn68,400-77,500/t ex-works on 20 March, amid subdued demand from the ternary cathode active material (CAM) sector during the industry low season. In addition, the increase in cobalt prices after the DRC's supply halt is expected to dent demand for ternary CAM in the long term.

Export prices also dropped to $10.00-10.50/kg fob China on 25 March from $10.10-10.60/kg fob China on 20 March, mainly because of sluggish demand from the overseas market. China exported 7,545t of lithium hydroxide over January-February, down sharply by 59pc from a year earlier. South Korea was the largest buyer, making up 67pc of China's total exports, followed by Japan at 26pc.

Prices for lithium were assessed unchanged in Asia, with carbonate prices assessed at $9.30-10.00/kg cif Japan/Korea and $9.50-10.50/kg for hydroxide. Some pessimistic market participants expect lithium carbonate prices to fall to Yn68,000/t or even Yn65,000/t.

A Chinese major lithium hydroxide producer said its lithium hydroxide export prices are now being quoted at $10/kg, with a trader today saying a Chinese Sichuan refiner sold 100t of battery-grade lithium hydroxide to LG in South Korea at around $9.70-10.00/kg.