BEIJING: China’s lithium carbonate futures on the Guangzhou Futures Exchange hit an 11-week high on Wednesday, amid speculations of supply disruption against rising demand from the battery sector.
The most-traded July lithium carbonate contract jumped as much as 7.5% to 112,250 yuan ($15,592.66) per metric ton in early trading, the highest since Dec.11.
It was up 4.5% by 0418 GMT, marking a fifth-day rally with a total gain of 14% from a two-month bottom. Speculation about environmental inspection at the country’s main producing region Jiangxi province sparked supply concerns.
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“The uptrend was driven by talks about supply-side production cuts, maintenance and environmental inspections,” said Zhang Weixin, an analyst at China Futures.
Open interest of the contract also increased for five days in a row, suggesting more money flowing into the market.
Also supporting prices was a brighter demand outlook following a jump in lithium end-users’ planned production, Zhang said.
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