LiCarbonate Daily - March 26th

Further Declines in Futures: On March 26th, the lithium carbonate 2407 main contract continued its downward trajectory, falling by 2.52%. Opening at 107,900 yuan/ton and settling at 108,400 yuan/ton, the contract saw a trading volume of 265,201 with open interest decreasing to 200,797, shedding 5,391 positions. The day's price movement featured an initial period of sideways trading, followed by a sharp decline and a brief recovery from the day's low of 106,550 yuan/ton, closing with a loss of 2.52%.

Spot Prices Adjust Lower: The spot market for battery-grade lithium carbonate adjusted downwards, with prices ranging from 108,000 to 113,000 yuan/ton, bringing the average to 110,500 yuan/ton—a reduction of 1,950 yuan/ton from the previous day. The SMM battery-grade lithium carbonate index fell by 1,626 yuan to 109,922 yuan/ton. Industrial-grade lithium carbonate also saw a decrease in its average price by 2,150 yuan to 105,700 yuan/ton.

Market Sentiments and Pricing Dynamics: Despite the overall downtrend, some lithium salt companies continued their strategy of holding firm on spot sale prices, with overall price reductions being relatively moderate compared to earlier declines. Cathode and other downstream sectors reported a gradual decrease in the overall shipment prices of lithium salts, aligning their recent spot purchases with the declining price trend. Trade companies also noted a more pronounced downward trend in their pricing, with a positive market response to lower-priced supplies indicating a strong absorption capacity for competitively priced lithium carbonate.

Concluding Observations: The lithium carbonate market on March 26th depicted a continuation of the downward price adjustment, with both futures and spot markets experiencing declines. Despite some lithium salt companies attempting to maintain firmer prices, the broader market sentiment and trading activities reflect a shift towards lower price points, driven by both supplier strategies and buyer responses. This trend signifies a market in transition, adapting to new supply-demand dynamics and pricing levels amidst cautious optimism for future stabilization.

If you have any questions regarding the recent movement of lithium carbonate market (e.g. what caused it and how this can affect your business), or would like to know more comprehensive pricing info on Lithium Carbonate. Please feel free to reach out to me:

Robin He

SMM Li-ion Battery Materials Department

E: robinhe@smm.cn | T: +86-21-51595884