Lithium Carbonate Market Weekly Review: 4.7-4.9 Spot Lithium Carbonate Fluctuated Downward [SMM Weekly Review]

Spot lithium carbonate prices fluctuated downward this week. Futures market fluctuations continued, with the most-traded contract price range sliding from 155,000-164,300 yuan/mt at the beginning of the week to 151,400-158,200 yuan/mt, showing significant intra-week volatility and continuously declining open interest.

In the spot market, upstream lithium chemical plants continued to hold prices firm and hold back from selling this week. However, as prices kept falling, their psychological price expectations and quoted prices softened somewhat, with a small number of enterprises already quoting below 160,000 yuan/mt. Downstream material plants maintained a strategy of buying the dip: when prices fell below the psychological price level of 155,000 yuan/mt, downstream purchase willingness strengthened notably, driving market inquiries and actual transactions to become more active. Overall, transaction volumes picked up after the price decline, and the price spread between upstream and downstream narrowed.

News continued to disturb market sentiment. Jiangxi mine developments and Middle East geopolitical fluctuations continued to unsettle the market, serving as key factors behind this week's price fluctuations. In addition, news regarding Zimbabwe's lithium ore export restrictions continued to ferment. Looking ahead, on the supply side, ongoing disruptions from lithium resources supply sources such as Jiangxi mines and Zimbabwe have yet to be resolved; on the demand side, the concentrated launch of new car models in April is expected to drive incremental demand at the margin. With supply-side disruptions yet to subside and downstream rigid demand providing a floor, spot lithium carbonate prices are expected to hold up well in the near term.