Acute fluctuations in Chinese lithium markets out of fear of supply disorder

Lithium metal markets in China, which is one of the basic minerals in the batteries industry, are witness to increasing prices fluctuations while investing investors in anticipation of the possibility of supplies to disorder. The prices of lithium carbonate distributed on the Gangjo scholarship for future contracts rose 8% last Friday, which is the maximum allowed daily increase, to achieve weekly profits of 14%. These stock gain led to a notice issuing a notice to reduce speculation Ambag, which contributed to paying the prices with the daily limit allowed today, Monday. The shares of the producing businesses have also risen, as the share of the company “Chengxin Lithium Group” (Chengxin Lithium Group) was on the Shenzhen stock exchange this month. Reducing the supply of lithium This rise has come after movements that could eventually lead to reducing supply, amid anxiety over production prospects, as well as the government’s focus on combating industries suffering from a surplus in the production capacity, as part of its campaign against what is known as “competitive exhaustion”. Robin Tesiran, head of the Department of Batteries at the Mediation Company Scb Group, said: “The trading of speculation based on the noise of the market has led to a significant increase in prices,” note that it increased the actual prices of sulfodrin ruol (RAW containing lithium carbonate) and caused serious fluctuations in international trading contracts. Lithium market is not strange to violent disorders and fluctuations in prices; After the immediate prices culminated in 2022 at approximately 600,000 yuan ($ 84 thousand US dollars) per tonne, it collapsed to about 60,000 yuan earlier this year as a result of a surplus in the supply and indications of the slowdown of electric motor batteries. Read more: Lithium production is slow and infected. Is there a solution? This collapse urged the market to expect for measures that combat the surplus. Jiangshechi and its covenant city – Lithium Production Center – is one of the key points of interests, as the province is expected to contribute about 10% of the worldwide production of the metal this year, according to Cameron Berx, director of Lithium Products at the Benchmark Mineral Intelligence. Lithium Reserves, the Natural Resources Office in Yichon, requested 8 mining companies earlier this month to submit crude reserve reports by the end of next September, to an audit that revealed offenses in the registration of licenses and approval procedures, according to the notes that were issued by intermediaries and analysts. The contacts addressed to the local government were not answered. Last week, Jiangxi Special Electric Motor announced that its unit in Yichon will stop the lines of lithium salt production for about 26 days, for reasons related to reducing costs and maintenance work. Sinomine Resource Group announced last June that it will stop a project in Jiangshi for a six -month period to change its technologies. Also read: China leads lithium production in Africa to secure the supply of metal batteries which is also subject to auditing, as the Zanghai Province authorities ordered ‘Zanghi Maining’ last month to stop illegal mining activities. Jeffrez concluded in a memorandum of clients last Friday: “Although the influence on the amount of production is still limited at the moment, the anxiety lies in the possibility of using mining rights as a tool to control the offer, especially in light of an anti -competitive environment,” knowledge of “expectations to tighten inspections, which can lead to scarcity in the market.”