Weekly Review of the Lithium Carbonate Market: Spot Lithium Carbonate Prices Continue to Rise Amid Supply-Side Disruptions [SMM Weekly Review]

This week, spot lithium carbonate prices continued to rise, with the increase expanding. The SMM battery-grade lithium carbonate average price climbed from 152,000 yuan/mt on Tuesday (February 24) to 173,000 yuan/mt on Thursday (February 26), a cumulative rise of 21,000 yuan/mt over three trading days; the industrial-grade lithium carbonate average price also increased from 148,500 yuan/mt to 169,500 yuan/mt, with the same 21,000 yuan/mt gain.

The key catalyst driving the accelerated price rise this week stemmed from sudden policy changes in major lithium resource-supplying countries. On Wednesday (February 25), Zimbabwe, the world's fourth-largest lithium resource producer, announced through its Ministry of Mines that it would immediately suspend all exports of lithium concentrates and raw ore (including goods in transit), allowing only enterprises with valid mining rights and approved beneficiation plants to apply for export qualifications. This move aimed to strengthen mineral regulation, combat illegal export activities, and promote the localization of the lithium industry chain. Affected by this unexpected event, the most-traded lithium carbonate futures contract surged by 12% intraday on Thursday, reaching a high of 187,700 yuan/mt.

Meanwhile, the spot market transactions remained sluggish, with a clear divergence in sentiment between upstream and downstream players. Overall, upstream lithium chemical plants showed a strong reluctance to sell, with a low willingness to ship spot orders, and some enterprises made limited shipments at relatively high futures levels; downstream material plants maintained a cautious stance, adhering to just-in-time procurement, with most enterprises sticking to a strategy of restocking at lower prices, showing little interest in chasing higher prices. Overall, despite the rapid price surge, market inquiries and actual transactions still appeared sluggish.