China's first-quarter lithium exports surge on strong overseas demand
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China, the world’s top producer and exporter of battery metal lithium hydroxide, shipped out 30,206 tonnes of it in the first three months of 2023.
PHOTO: REUTERS
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BEIJING – China’s exports of lithium hydroxide in the first quarter surged 72 per cent from a year ago, Customs data showed on Friday, underpinned by strong overseas demand for battery raw materials and falling prices.
The world’s top producer and exporter of the battery metal shipped out 30,206 tonnes of it in the first three months of 2023, up from 17,559 tonnes exported during the same period in 2022.
In March, exports rose 77 per cent from a year earlier to 10,235 tonnes.
Spot lithium hydroxide prices in China averaged 355,000 yuan (S$68,800) a tonne in March, down 40 per cent from an average of 590,000 yuan a tonne in November, when the market hit an all-time high, according to data from Fastmarkets.
The sharp downtrend was because of weakening demand from China’s electric vehicle (EV) market after Beijing ended its national subsidies in 2023,
“In the wake of poor domestic demand, exporters are offering bigger discounts of their material to overseas buyers to de-stock,” Ms Vicky Zhao, a Beijing-based senior analyst at Fastmarkets, said ahead of the data’s release.
China’s overall exports showed a surprise jump in March because of the rising demand for lithium batteries, as well as for EVs and solar products, officials said earlier in April.
Spot prices for lithium hydroxide delivered to China, Japan and South Korea, assessed by Fastmarkets, dropped to US$40.50 per kg on April 20, less than half the peak price of US$85 per kg last December. REUTERS
