LiCarbonate Daily - March 8th

On March 8th, the lithium carbonate market observed a slight decline in futures contracts while spot prices modestly increased, amidst a backdrop of cautious optimism and strategic adjustments in supply and demand dynamics.

Futures Market Dynamics: The lithium carbonate 2407 main contract experienced a minor decrease of 0.70%, opening at 113,200 yuan/ton and closing at 113,350 yuan/ton. The trading volume for the day was 314,274 lots, with open interest reaching 217,323 lots, an increase of 1,680 lots from the previous trading day. The price showed volatility throughout the day, dropping to a daily low of 111,100 yuan/ton before recovering. After a stable run post-midday, the contract slightly fell again, then fluctuated upwards, ultimately closing down by 0.70%.

Spot Market Overview: Spot prices for battery-grade lithium carbonate were quoted between 105,800 and 112,000 yuan/ton, with an average price of 108,900 yuan/ton, marking an increase of 400 yuan/ton from the previous day. The SMM battery-grade lithium carbonate index rose slightly to 106,797 yuan/ton, up by 85 yuan/ton. Industrial-grade lithium carbonate prices ranged from 95,000 to 105,800 yuan/ton, with an average price of 100,400 yuan/ton, an increase of 1,400 yuan/ton. Lithium salt companies continue to prioritize long-term contracts, with no significant change in their stance on spot sales prices.

Market Insights: As spot market lithium carbonate prices generally rose compared to earlier periods, and as previously stockpiled raw material inventories gradually depleted, downstream companies, including cathode manufacturers, showed an increased willingness to accept higher prices. The majority of these downstream entities continued to pursue spot purchases for immediate needs, beyond their long-term and customer-supplied contracts. However, due to a scarcity of low-priced market offerings, the purchasing price center for lithium carbonate spot has trended upward. Additionally, the reduction of lower-priced industrial-grade lithium carbonate in the market, following the cessation of releases from a certain salt lake enterprise, led some cathode manufacturers to report an increase in transaction price centers. With lithium salt companies outside the Jiangxi Yichun area gradually returning to normal production states, the domestic lithium carbonate spot supply level is expected to recover over time, though the transition from production resumption to effective supply increase will take some time, likely extending the current supply-demand negotiation phase.

Conclusion: March 8th's lithium carbonate market movements reflect a day of slight adjustments, with futures experiencing a minor dip and spot prices seeing modest gains. The strategic positioning of suppliers and the adaptive responses of buyers indicate a market in flux, carefully balancing between immediate supply constraints and anticipatory demand adjustments.

If you have any questions regarding the industry data (e.g. 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