Summary of Key Points from J.P. Morgan's Lithium Industry Report Industry Overview - The report focuses on the lithium industry, specifically the trade data related to lithium hydroxide (LiOH) and lithium carbonate from China for July 2024 and year-to-date (YTD) figures. Key Data Points Lithium Hydroxide (LiOH) - **Exports**: In July 2024, LiOH exports from China dropped by 86% year-over-year (y/y) to 1.2kt compared to 9.1kt in July 2023. This marks the lowest monthly export level for the year [2][4]. - **YTD Exports**: Net exports YTD are 21.2kt, which is 71% lower than the same period last year. Full-year 2024 net exports are projected at 113kt, down 11% from 2023 [2][4]. - **Historical Context**: FY2023 net exports were 126.2kt, a 40% increase y/y, while 2022 exports were 90.3kt, which was 29% higher than 2021 [2][4]. Lithium Carbonate - **Imports**: July 2024 lithium carbonate imports decreased by 43% y/y to 13.8kt from 24.2kt in July 2023. YTD net imports are 128.7kt, approximately flat compared to the same period in 2023 [2][4]. - **Full-Year Projections**: For full-year 2024, net imports are expected to reach 231kt, a 55% increase compared to 2023 [2][4]. - **Historical Context**: In 2023, net imports were 149.2kt, a 19% increase y/y, while 2022 saw imports of 125.7kt, which was 72% higher than 2021 [2][4]. Price Trends - **Lithium Carbonate Prices**: The average import price for lithium carbonate decreased by 1% month-over-month (m/m) and 9% y/y in July, averaging $9,987 per ton [2][4]. - **LiOH Prices**: The average export price for LiOH fell by 8% m/m and 39% y/y in July, averaging $9,961 per ton [2][4]. Additional Insights - The significant drop in exports and imports indicates a potential slowdown in demand or production challenges within the lithium sector, which could impact pricing and availability in the global market [2][4]. - The historical data shows a trend of increasing exports and imports in previous years, making the current declines noteworthy and warranting further investigation into market dynamics and potential causes [2][4]. Conclusion - The lithium industry is experiencing notable fluctuations in trade volumes and pricing, with significant declines in both LiOH and lithium carbonate exports and imports in July 2024 compared to previous years. This trend may have implications for market participants and investors in the lithium sector [2][4].