Chilean lithium volume exports to China declined in December, reflecting lower demand both on an annual and monthly basis, Kallanish learns from Chile’s customs data. 

The official data shows that Chile shipped 8,676 tonnes of lithium products to China last month. That’s a 17.6% decline from the 10,530 t exported in December 2022 and a 36.2% drop compared to the 13,592 t exported in November 2023.

The performance comes after a 35% on-year increase in November, but a 19% on-month decline compared to October when Chile exported a 2023-monthly-record 16,791 t of lithium to China.

Asia, especially China, remains an important market for Chilean lithium, accounting for 94% of all exports last year. Of that, China was the destination for 64.7% of the total Chilean exports in 2023. Other major importers in the region were South Korea and Japan.

In total, Chilean producers sent around 134,219 t of lithium products to China last year – an increase of 7.6%. The volume includes lithium sulphate, carbonate and hydroxide.

As one of the largest lithium-producing countries in the world, Chile could help boost declining spodumene and lithium carbonate prices (CIF China). That’s because the world’s largest lithium deposit, the Atacama salt flat has been a target of local protesters this week. Around 500 indigenous people have blocked the entry to the salt flat, claiming they were marginalised in the exploration agreement reached between the government and SQM.

Market observers believe that if protests disrupt supplies, it will have an upside effect on prices.