How long will the two-tier lithium chemical market last for?
Over time, prices for the two major lithium chemicals, lithium carbonate and lithium hydroxide, have traded pretty much in lockstep apart from short periods where one has traded at a discount or premium to the other. But then the status quo has returned. But during the recent correction in Chinese spot lithium prices, a clear differentiation between lithium carbonate and lithium hydroxide prices has emerged. Carbonate prices have performed much worse than hydroxide prices over the past six months. Why has this happened, and is this likely to be sustainable over the long run? We believe that oversupply in the...