LiCarbonate Daily - Market Update for June 4

Market Summary: On June 4, the lithium carbonate market experienced a slight decline, with the main 2407 futures contract falling by 0.97%. The futures opened at 102,700 yuan per ton (~14,185.08 USD/ton) and closed at 101,850 yuan per ton (~14,067.68 USD/ton). The trading volume was 80,207 contracts, and open interest increased by 2,826 contracts to 168,086.

Spot Market Overview:

Battery-Grade Lithium Carbonate:

SMM index: 103,461 yuan per ton (~14,290.19 USD/ton), down by 1,133 yuan from the previous day.

Price range: 101,700 - 105,900 yuan per ton, with an average price of 103,800 yuan per ton (~14,337.02 USD/ton), down by 1,100 yuan.

Industrial-Grade Lithium Carbonate:

Price range: 99,000 - 101,000 yuan per ton, with an average price of 100,000 yuan per ton (~13,812.15 USD/ton), down by 1,100 yuan.

Market Dynamics:

Futures Performance: The main 2407 futures contract opened at 102,700 yuan per ton and showed stable fluctuations until a sharp drop at the end of the morning session, hitting an intraday low of 101,400 yuan per ton before recovering slightly. In the afternoon, it remained below the daily average line, ultimately closing down by 0.97%.

Spot Market Activity: Spot transactions remained subdued. Some downstream buyers, uncertain about the bottom of the current price decline, continued to avoid spot purchases based on price points and preferred to source through long-term agreements and customer-supplied formulas for stability. Upstream lithium salt producers have begun adjusting their quotes and discount factors to facilitate transactions. Consequently, spot prices continued to decline due to weak market activity.

Looking Forward:

Production and Sales:

Upstream producers are adjusting their pricing strategies to promote transactions amid sluggish market conditions.

Purchasing Behavior:

Downstream buyers remain cautious about spot purchases due to uncertainty about price trends, relying more on long-term agreements and customer supplies. Market activity is expected to remain weak in the near term.

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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