SHANGHAI, Jun 5 (SMM) – SMM battery-grade lithium carbonate prices were 282,000-313,000 yuan/mt as of May 30, with the average price up 2,500 yuan/mt from the previous trading day to 297,500 yuan/mt. 

Key event

It was rumoured that a salt lake enterprise in Qinghai province put up 3,000 mt of lithium carbonate for sale at 300,000 yuan/mt.

Market sentiment in industry chain

Lithium carbonate smelters held offers firm and were reluctant to make compromise. Some cathode material producers had to accept high prices due to rigid demand, while others refused to purchase at more than 300,000 yuan/mt. In this context, the quotation by the salt lake enterprise in Qinghai will only intensify deadlock in the spot market.

Speculation by traders

Traders tend to sell off when prices go down and hold back cargoes when prices go up. Hence, market players in the industry chain hold different opinions on whether they should cooperate with traders.

One downstream enterprise: Small downstream enterprises like us have to seek lithium carbonate from traders as smelters are unwilling to sell to us. Therefore, we have to accept high prices.

Another downstream enterprise: We absolutely oppose purchasing from traders as they tend to inflate market prices.

One smelter: We hope market prices are reasonable, open and transparent. We don’t want prices to rise or fall drastically due to speculation by traders.

Smelters made lucrative profits when lithium carbonate prices surged, but suffered severe losses when prices were in a downturn. Upstream and downstream enterprises oppose rampant speculative activities that were driven by profits. Traders also play an important role in the healthy development of lithium battery industry.

Views on current lithium carbonate prices

The current lithium carbonate prices are mainly driven by market sentiment and speculation by traders. In fact, market fundamentals have not been reversed significantly.

More popular news

Fitch Says Falling Commodity Demand Causes Industrial Production To Cool Rapidly And Softer Commodity Prices Such As Copper Are Clear Signs Of Economic Slowdown

Key Takeaway from SMM 2023 Indonesia Nickel and Cobalt Industry Chain Conference: Global Nickel and Stainless Steel Market Outlook 2023-2027 and Indonesia’s Critical Role in Attracting Chinese Investment 

ANZ Bank Is Bearish Towards Iron Ore Prices, Citing Four Key Negative Developments In China

Fitch: Global Trade Is Slowing Sharply And May Grow Only 1.9% This Year

One Of China's Top Two Lithium Giant To Expand Capacity Aggressively As It Bets On Nev And Energy Storage Markets In The Long Run, Despite Cyclical Downturn Of Lithium Carbonate Prices

BHP Plans To Expand Iron Ore Production Aggressively

South China Battles Power Crisis, The Worst This Year

Tesla to Compete with Chinese NEV Rivals Using Redesigned Model 3 Soon, China Has Become Tesla's Second Largest Market after the US