[SMM Analysis] Weekly Lithium Ore Market

This week, lithium ore prices show a downward trend following lithium carbonate prices.

After the holiday, some smelters gradually resumed operations, maintaining a steady demand for ore purchases. However, as overseas lithium ore suppliers continue to stand firm on quotes, lithium chemical plants are increasingly inclined to push for lower prices amid the current downward trend in lithium carbonate prices. Their acceptance of higher-priced lithium ore continues to weaken, resulting in overall mediocre transaction performance. Domestic lithium ore suppliers, supported by the resumption of operations and the arrival of previous orders, show some willingness to sell. Although their quotes have slightly decreased in line with the decline in lithium carbonate prices, they remain firm on quotes overall, with transaction performance also remaining mediocre.

On the lepidolite side, small and medium-sized suppliers continue to stand firm on quotes. However, due to pre-holiday auctions and shipments by large suppliers, non-integrated lithium chemical plants have accumulated some inventory to sustain production during and after the holiday. As a result, they mostly adopt a wait-and-see attitude toward the relatively small supply and higher quotes from current small and medium-sized suppliers, with their psychological acceptance price pulling back slightly in line with the decline in lithium carbonate prices. Additionally, the anticipated shipments from a major supplier and the expected resumption of production at a leading mine may alleviate the current undersupply situation of lepidolite ore.

Lithium ore prices are expected to continue pulling back along with the decline in lithium carbonate prices.