Lithium Prices Stabilize Amid Supply Constraints
On May 22, 2025, lithium prices showed signs of stabilization as the market continues to face supply constraints. According to the latest report from the China Lithium Industry Association, lithium carbonate prices remained steady.
The transaction price range for lithium carbonate was noted as follows: N-type lithium carbonate was between 3.60 million CNY/ton to 4.10 million CNY/ton, with an average transaction price at 3.86 million CNY/ton; N-type lithium hydroxide ranged from 3.50 million CNY/ton to 3.70 million CNY/ton, with an average at 3.60 million CNY/ton; and P-type lithium carbonate had a price range of 3.00 million CNY/ton to 3.50 million CNY/ton, with an average price at 3.13 million CNY/ton.
Despite a period of decline influenced by the “rescue wave,” lithium prices in some segments of the market remained inconsistent. However, the overall supply chain dynamics have not resulted in significant improvements, indicating that the upward pressure on lithium prices continues.
According to the China Securities Journal, the latest price indications show that lithium supply may remain constrained, leading to expectations of continued price pressure in the near term. The association predicts that the total lithium supply in China for 2024 will reach 184.28 million tons, reflecting a year-on-year increase of 25.32%. By the end of 2024, lithium production capacity is expected to be 286.83 million tons per year, with a growth rate of 41.76%.
The Lithium Industry Association’s report also highlighted that since May, several lithium producers have been adjusting their output or maintenance schedules, which may impact future prices. The market anticipates that prices will remain elevated due to ongoing demand and supply challenges.
In addition, the association noted that the average cost of lithium production remains high, primarily due to rising raw material costs. The current production cost is around 36,000 CNY/ton, with energy costs accounting for about 7,000 CNY/ton, resulting in a total production cost of around 43,000 CNY/ton.
Going forward, the association emphasizes the importance of maintaining stable production levels to meet the growing demand, as the lithium market continues to evolve in response to both domestic and international pressures. The forecast for the second quarter indicates that the number of lithium producers will consolidate further, potentially reducing the competition.
The dynamics of global lithium supply and demand remain complex, with many stakeholders expressing concern over the pricing trends. As the market adjusts, it will be crucial for companies to navigate these challenges to sustain growth and profitability.
The latest updates on lithium prices will be available through industry reports and analytics, ensuring stakeholders remain informed on the market’s developments.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/stable-pricing-trends-in-the-multi-crystal-market-amid-ongoing-supply-chain-adjustments/
