FX.co ★ Lithium Falls to 8-Month Low

Lithium carbonate prices in China fell below CNY 135,000 per tonne in September, marking a year-to-date low, after an upward revision to inventory estimates led markets to factor in a more comfortable supply outlook. Industry group SMM altered its methodology for compiling stockpile data, prompting a 175,000-ton increase in reported Chinese inventories—around twice previous estimates.

The softer prices were further underpinned by a robust production outlook from Australian miners. Mineral Resources resumed operations at the Bald Hill lithium mine after an 18‑month suspension, while Core Lithium restarted its Finniss project.

A steeper price decline was averted by renewed disruption at CATL’s Jianxiawo mine, China’s largest by capacity and the source of roughly 4% of global supply. Chinese authorities revoked the mine’s environmental approvals, extending its permitting challenges for more than a year. The move aligns with Beijing’s broader “anti‑involution” campaign and its efforts to rein in overcapacity among producers.