Nickel Contratcs news changes coming11 Nov 2022 05:34
Methodology Contact us Login
Fastmarkets
Markets
Products
Platform
Insights
Events
About us
Become a customer
Show Search
Concerns over a looming lithium price fall key focus at Antaike’s nickel and cobalt conference
Five key takeaways from the annual nickel and cobalt conference hosted by Chinese information provider Antaike over November 2-4 in Changzhou, China
November 9, 2022
By Sally Zhang, Zihao Li
Battery materialsLithiumNickelCobalt
Nickel and cobalt market participants voiced their views and gave their outlook after a year of volatility and uncertainty. Fastmarkets summarizes below five key takeaways from the sidelines of the conference.
Concerns about weakness in lithium market
Limited interest in cobalt hydroxide
Brand announcement for nickel briquettes imminent
Long-term supply discussions for nickel cathode
China’s nickel sulfate demand robust
1. Concerns about weakness in lithium market in 2023
Despite the bullishness in the lithium market so far this year, which market participants expect to continue until the end of 2022, delegates expressed concern on the sidelines of the conference about a looming price fall.
“It’s a cyclical thing. No price can stay on the uptrend forever and lithium prices may see a sharp fall in 2023,” a trader said.
Fastmarkets’ research team forecasts demand of 698,900 tonnes of lithium carbonate equivalent (LCE) for 2022, increasing to 884,400 tonnes in the following year. Supply will increase from 679,400 tonnes of LCE in 2022 to 895,900 tonnes in 2023, leaving the market in a slight surplus.
“In 2023, multiple spodumene projects will come online, like the Wodgina spodumene mine. This will add significantly to spodumene supply,” a lithium producer source said.
“Lithium salts production will also be ramped up, which will to a great extent ease the tightness seen currently in the lithium market, leading to a decrease in lithium prices,” the producer source also said.
Attendees were also concerned about the potential impact on demand for electric vehicles (EV) and on upstream battery materials, including lithium, of the Chinese government’s decision to cut completely its buyer subsidy for EVs.
“Due to the removal of [the subsidy] and the gloomy macroeconomic environment, sales of EVs next year might be impacted. If demand for EVs sees a substantial retreat, lithium prices will also fall quickly, probably from April, the typically weak season for lithium prices,” a cathode producer source said.
2. Limited interest in negotiations for cobalt hydroxide on long-term contracts
The annual long-term contract negotiations for cobalt hydroxide have been sluggish during the current traditional mating season – China’s weak cobalt market this year and a gloomy outlook in 2023 have curbed interest.
Thin demand and high cobalt hydroxide prices have caused domestic producers to suffer “losses for most of 2022”, a cathode producer source said.
“In terms of coba
Sign In
Follow the stocks
