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Argus Media Limited

11/26/2021 | News release | Distributed by Public on 11/26/2021 04:45

China's October Li2CO3 imports, LiOH exports rise

China's lithium carbonate imports and lithium hydroxide exports increased in October from a year earlier, in response to robust demand from the lithium-ion battery industry.

China imported 10,476t of lithium carbonate in October, up by 60pc from a year earlier and by 194pc from September. The average import price was $8.28/kg, up by 88pc on the previous year and by 9pc from September.

The 135-member Albemarle Salar union comprising half of the workers at Chile's Salar production plant, which processes brine into lithium-rich brine, went on strike in August for one month. The strike and the escalating Covid-19 pandemic in Chile delayed shipments during the month and reduced China's lithium carbonate imports in September.

This was followed by the arrival of a wave of cargoes in China in October, according to Chinese market participants. Buoyant domestic demand bolstered lithium carbonate imports over January-October by 81pc from the same period a year earlier to 69,695t. Chile was the biggest supplier, accounting for 79pc of China's total imports, followed by 19pc and 1pc from Argentina and South Korea respectively, customs data show.

Firm demand from the main downstream industries, particularly lithium-ion batteries used to make electric vehicles (EVs), computers and communications and consumer electronics, has bolstered imports for lithium carbonate this year.

Total output of power batteries rose to 159.8GWh during January-October in China, up by 250pc compared with the same period last year, while installed volumes increased by 168.1pc to 107.5GWh over the same period. Production and installed volumes of lithium iron phosphate batteries for January-October were 87.5GWh and 53.2GWh respectively, accounting for 54.8pc and 49.5pc of total volumes compared with 72GWh and 54.1GWh for ternary batteries.

Li hydroxide exports rise

China's lithium hydroxide exports rose to 6,248t in October, up by 10pc from a year earlier but down by 17pc from September. The average export price was $11.24/kg, up by 35pc on the previous year and by 5pc from September.

It exported 60,041t during January-October 2021, up by 37pc from the previous year. South Korea was the larger importer of China's lithium hydroxide, accounting for 59pc of the total, followed by 37pc to Japan and 1pc each to Singapore, the Netherlands and India, customs data show.

Downstream demand from battery manufacturers outside of China, mostly in South Korea and Japan, has maintained rapid growth in particular from the EV sector. Global sales of new energy vehicles are expected to exceed 5mn this year, up by over 50pc from last year, according to market participants.

China lithium hydroxide exports
exports (t) y-o-y ± % Monthly avg price ($/kg)
Jan '21 6,331 47 8.6
Feb '21 4,880 258 8.7
Mar '21 4,769 5 8.5
Apr '21 5,707 13 8.7
May '21 6,130 3 8.9
Jun '21 7,118 64 9.0
Jul '21 4,064 10 9.9
Aug '21 7,312 92 9.7
Sep '21 7,482 26 10.7
Oct '21 6,248 10 11.2
Total 60,041 37
Source: China customs
China lithium carbonate imports
import (t) y-o-y ± % Monthly avg price ($/kg)
Jan '21 5,495 154 4.5
Feb '21 7,165 174 4.5
Mar '21 6,481 60 4.9
Apr '21 8,971 86 5.5
May '21 8,578 211 5.4
Jun '21 6,146 10 6.3
Jul '21 4,496 227 6.4
Aug '21 8,318 145 6.9
Sep '21 3,569 -32 7.6
Oct '21 10,476 60 8.3
Total 69,695 81
Source: China customs
Global EV sales forecast by Argus(mn unit)