Metals Update: Lithium

LITHIUM: 2024 has seen a continuation of the decline in Lithium prices which have fallen more than 50% since Lithium carbonate futures were launched on the Guangzhou Futures Exchange (GFEX) last year. The market outlook remains bearish as supply continues to outpace demand, with levels now so low we may start to see production cuts emerge in an effort to slow the decline.

Chinese inventories in addition remain high and according to Chinese price reporting agency SMM, quotational period (QP) for Lithium concentrates have also been adjusted from Q-1 (average price of previous quarter) to M-1 (average price of month before sailing month) in an effort to lower prices.

By Zack Zhang, Broker, Derivatives, Singapore

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