Lithium Falls to 8-Month Low

Lithium carbonate prices in China fell under CNY 135,000 per tonne in September, the lowest year-to-date, after an upward revision to stockpiles drove markets to price a more comfortable supply backdrop. Industry group SMM changed their methodology to compile inventory data that prompted a 175,000-ton increase in Chinese stockpiles, double the earlier estimates. This was combined with a strong outlook for Australian producers. Mineral Resources restarted Bald Hill lithium mine following an 18-month suspension, while Core Lithium restarted its Finniss project. A sharper pullback was prevented by more disruption in CATL's Jianxiawo mine, China's largest by capacity and responsible for 4% of global supply. Chinese authorities revoked their environmental approvals for the mine to extend the period of permit hurdles for over one year, coinciding with Beijing's anti-involution campaign and efforts to combat producer overcapacity.