With some smelters struggling in losses, lithium carbonate price drop may slow down

In the week ending Nov 16, lithium carbonate spot market was still dominated by long-term contract transactions. Against the background of the downward trend of lithium carbonate spot prices, bulk orders were scarce. On the supply side, indicating sell-off pressure in the future. Chilean lithium carbonate shipped to China in October increased by 84% month-on-month to 16,791 mt, which will add to domestic market supply. On the demand side, domestic and overseas battery cell and EV makers still center on destocking, especially in the energy storage sector. Most cathode companies have basically signed orders for delivery by year-end, but there is no significant increase in LFP orders. Affected by the above factors, the subsequent spot market price of lithium carbonate may still show a downward trend. As the costs of some lithium salt companies that purchase lithium ore externally are inverted, the subsequent decline in the spot price of lithium carbonate may gradually slow down. Follow-up attention needs to be paid to whether overseas mines can accept M+1 and other settlement methods during the negotiations over long-term contracts at the end of the year, which will determine the strength of cost support for lithium carbonate.