SMM Daily Review: Spot Lithium Carbonate Prices Drifted Lower on September 10

Today, SMM battery-grade lithium carbonate spot prices drifted lower compared with the previous trading day. The lithium carbonate 2701 contract opened higher at 142,300 yuan/mt today. After the open, bulls pushed prices up quickly to around 143,800 yuan/mt, but the level did not hold, and the contract then consolidated lower under selling pressure from bears. Near midday, prices accelerated downward, hitting a low of 139,500 yuan/mt. In the afternoon, bulls organized a rebound from low levels, and prices recovered to near the average price line. In late trading, prices weakened again, closing near 141,300 yuan/mt, down 0.52% at 141,300 yuan/mt. Open interest increased by 3,280 lots.

This week, China's lithium carbonate production gradually climbed as lithium chemical plants using spodumene resumed production after maintenance and raw materials arrived at ports, while production from other raw material sources remained relatively stable. From the perspective of actual market transactions and inventory, upstream lithium chemical plants showed increasingly strong sentiment to hold prices firm and hold back from selling spot orders as spot prices drifted lower. Long-term contracts and additional volumes under long-term contracts were shipped gradually, and inventory destocked slightly. Downstream cathode material plants, battery cell manufacturers, and other downstream players are in the period of pre-stocking for September and October, adopting a dip-buying strategy. They showed strong willingness to purchase and stockpile near 140,000 yuan/mt, with relatively active buying, so inventory accumulated slightly. Traders saw a significant inventory drawdown as upstream spot order selling slowed and downstream players bought the dip to stockpile.