Oversupply and Weak Demand Continue to Plague China's Lithium Market Despite Recent Price Upticks
• China's physical lithium market expected to remain weak in coming months due to oversupply and weak downstream demand, despite some Australian production cuts and potential disruption in China.
• Lithium futures prices in China rose briefly due to announced Australian production cuts and environmental checks in China, but fundamentals remain bearish.
• Prices of Chinese lithium chemicals saw minor volatility recently but have plunged 74.5% in past year due to oversupply amid weak demand.
• Some Australian lithium producers like Core Lithium and IGO have cut or lowered production targets due to low spodumene prices.
• China imported over 4 million mt of lithium concentrates in 2023, up 41% from 2022, highly dependent on imports from Australia, Brazil and Zimbabwe.