Argus-assessed seaborne prices for 6pc grade lithium concentrate (spodumene) declined further to $605-655/t cif China on 3 June from $620-670/t cif China a week earlier. A supply surplus in the lithium salts market and lower production costs at some mines weighed further on concentrate prices. A trader offered $630/t cif China on 3 June but has not concluded a deal yet.
The government of Zimbabwe is likely to impose an export tax on spodumene in the near future, market participants said. The move may be designed to push foreign investors to expand the industry chain to more downstream products, such as lithium salts, according to market participants. China's Huayou and Sinomine are building or planning to build lithium salts plants in the country.
Prices for 99.5pc grade lithium carbonate in China were assessed at Yn59,500-62,000/t ex-works on 3 June, down from Yn59,500-62,500/t ex-works on 30 May and 29 May. A deal for 60t of carbonate was concluded at Yn60,000/t ex-works on 3 June. Increased supply from major producing countries China, Chile and Argentina continued to pressure carbonate prices.
China's electric vehicle (EV) manufacturers are cutting prices to boost vehicle sales, and they will probably pressure lithium salts suppliers to cut prices further, although some of them are already facing losses. China's Association of Automobile Manufacturers (CAAM) has called on domestic automakers to end their fierce price wars to prevent the industry from engaging in a "rat race" competition.
The most-traded July lithium carbonate contracts on Guangzhou Futures Exchange rebounded to Yn59,940/t on 3 June from Yn58,860/t on 29 May, but is still down from Yn60,920/t on 27 May and Yn62,140/t on 22 May, with traded quantities totalling 305,161t on 3 June.
Chinese import prices for 99.5pc grade lithium carbonate inched down to $7.30-7.60/kg cif China on 3 June from $7.40-7.70/kg cif China on 29 May. A continued rise in supplies from Chile and Argentina, as well as low buying interest, pressured imported carbonate prices. Most producers in Chile and Argentina have cost advantages because of sufficient resources, according to market participants.
Chinese domestic prices for 60pc grade lithium cobalt oxide (LCO) edged down from Yn214-234/kg ex-works on 29 May to Yn213-233/kg ex-works on 3 June, in line with the fall in cobalt tetroxide and lithium carbonate feedstock prices, as well as muted restocking demand, which was partly curbed by the US' high tariffs towards consumer electric products.
Argus-assessed prices for 56.5pc grade hydroxide dropped to Yn62,200-71,000/t ex-works China on 3 June from Yn62,200-71,200/t ex-works on 29 May and 30 May, weighed down by subdued demand from the ternary cathode active material industry.
Export prices in China were stable at $9.10-10/kg fob China on 3 June from 29 May, but were still lower than $9.10-10.10/kg fob China on 27 May, in response to shrinking overseas demand and plentiful supply.
