[SMM Analysis]SMM Daily Lithium Carbonate Market Review: Prices Decline Amid Weak Demand and Oversupply Pressures

April 21, 2025 – Spot lithium carbonate prices experienced a notable decline today, reflecting persistent weak demand and subdued market sentiment ahead of the May Day holiday.

Price Movements

• SMM Battery-Grade Lithium Carbonate Index: 70,957 yuan/ton, down 575 yuan/ton from the previous trading day.
• Battery-Grade Lithium Carbonate: 69,300–72,400 yuan/ton (avg. 70,850 yuan/ton), a drop of 600 yuan/ton day-on-day.
• Industrial-Grade Lithium Carbonate: 68,600–69,600 yuan/ton (avg. 69,100 yuan/ton), down 550 yuan/ton from the prior session.

Market Analysis

Downstream cathode material producers remain cautious, with no significant improvement in order visibility for May. Pre-holiday restocking demand has been weaker than expected, leading to thin trading activity in the spot market.

While lithium salt producers continue to exhibit price resilience, the prevailing oversupply dynamics in the lithium carbonate market are exerting downward pressure on prices. Additionally, the tight supply of industrial-grade carbonate has narrowed the price spread between industrial and battery-grade material, further constraining upside potential.

Short-Term Outlook

Given the lack of supportive demand catalysts and ample market supply, lithium carbonate prices are expected to remain in a weak and consolidating downtrend in the near term. Market participants should monitor potential adjustments in production schedules post-holiday and any shifts in downstream procurement strategies.

Key Factors to Watch:

• Downstream inventory replenishment post-May Day
• Potential supply-side adjustments by lithium salt producers
• Broader macroeconomic and EV demand trends

This report reflects SMM's latest market assessment. For further insights, please refer to our detailed lithium market analysis.