Lithium Carbonate Market Weekly Review: Strong Demand Support Drives Continued Lithium Price Rise [SMM Weekly Review]

This week, lithium carbonate prices continued their upward trend. Price-wise, the average price of battery-grade lithium carbonate gradually climbed from 76,550 yuan/mt at the beginning of the week to 80,000 yuan/mt, while the average price of industrial-grade lithium carbonate also rose from 74,300 yuan/mt to 77,800 yuan/mt, with a relatively significant cumulative increase. The trading range for the most-traded lithium carbonate futures contract shifted upward to 82,200-85,000 yuan/mt, reflecting market optimism about future prospects.

Supply side, production remained high, with operating rates for both spodumene and salt lake processes staying above 60%, and total production in October is expected to hit a new high. Demand side performed even more strongly, with simultaneous growth in the NEV and ESS sectors continuously boosting material demand, leading to a continued rise in operating rates at downstream material plants. Although lithium chemical plants showed reluctance to sell amid rising prices, resulting in mediocre actual market transactions, upstream inventory dropped to low levels due to increased long-term contract volumes and trader stockpiling, presenting a clear destocking pattern in the market.

Overall, the market currently shows a dual increase in both supply and demand, but demand growth is more prominent, driving consecutive price rises. In the short term, supported by low inventory and strong demand, lithium carbonate prices are expected to hold up well.