Aug. 3 at 10:39 AM
$LAC According to reports, eight lithium mines in Jiangxi are being scrutinised, which could potentially lead to suspensions.
Shanghai Metals Market’s baseline forecast for August was a 300 tonne surplus, but it suggested even limited disruptions could reduce monthly supply by 2000-2500t.
In the case of moderate disruption, meaning a temporary suspension of Jiangxi mines, the impact would be 8000-10,000t in August, easing to 5000t a month by the December quarter.
If mines are completely shut down, it forecasts a 10,000t impact to supply in August, escalating to 14,000t a month by the end of the year.
“Now, we remain cautiously optimistic but continue to monitor whether the flagged supply side adjustments will eventuate,” Henderson said.
