Chinese lithium carbonate prices rebounded on Oct. 19 after a rapid decline, while new resource data from Sichuan added to longer-term supply expectations and weaker September shipments from Chile offered some near-term support.
The low-end industrial-grade price increased 1,000 yuan to 96,400 yuan. Trading remained subdued: sellers were cautious after the fall, while buyers largely waited for lower prices.
The most-traded LC2701 futures contract opened at 96,000 yuan, more than 3,000 yuan below the previous settlement, before recovering to an intraday high of 102,000 yuan. It settled at 100,560 yuan, up 1,480 yuan, or 1. Rising turnover and declining open interest indicated that some short-position holders were taking profits and closing trades.
The market is being pulled between tighter immediate conditions and expectations of more supply later. At the same time, new mine approvals and production resumptions have strengthened expectations of looser future supply.
One major addition came from the Jiada mining area in Maerkang, Sichuan.
The resource filing does not itself establish when the full production volume will enter the market.
External supply also eased in September.
Near-term prices are expected to remain volatile around that level as participants weigh reduced visible supply and stronger battery demand schedules against the prospect of additional mine output and recovering overseas shipments.