According to foreign news on April 9, the Bank of America recently released a report that, despite the current lithium market due to the reluctance of countries to reduce production and present a state of oversupply, but with the production margins of the turn positive as well as the implementation of the necessary measures to reduce the production of lithium prices are expected to usher in the near future to rise rapidly. This forecast is based on the recent upward trend in lithium pyroxene prices and the market's optimistic expectations for a recovery in lithium demand.
Currently, the price of lithium pyroxene is stable at a level of approximately US$1,035 per tonne. Bank of America expects, with the market supply and demand gradually tighten, lithium pyroxene price is expected to further climb to 1,200 U.S. dollars per tonne. Meanwhile, the price of lithium carbonate is currently at US$14,100 per tonne, but the market generally believes that there is room for its price to rise further, possibly touching a high of US$14,500 per tonne.
It is worth noting that although the situation of oversupply in the lithium market is difficult to change in the short term, the turnaround of production margins and the implementation of production reduction measures will bring positive changes to the market. Once these measures are effective, lithium prices are expected to achieve a rapid rise in a short period of time, thus reversing the current situation of oversupply.
In addition, the Bank of America also paid attention to the dynamics of the rare earth market. The report points out that rare earth prices are expected to bottom out in the first quarter of 2024. Currently, the rare earths market is suffering from weak price performance due to a persistent surplus in the Chinese rare earths market and weak demand for industrial products and wind turbines. However, with the rapid development of emerging industries such as electric vehicles and wind turbines, rare earth demand is expected to receive a further boost.
Bank of America believes that despite some of the current challenges facing the rare earth market, the outlook for its development in the long term remains positive. With the continuous progress of technology and the rise of emerging industries, rare earths in various fields of application will become more and more extensive, market demand will continue to grow.
