LiCarbonate Daily - March 14th Update: A Dynamic Shift in the Lithium Market

Published: Mar 14, 2024 17:58 (GMT+8)

Source: SMM

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On March 14th, lithium carbonate futures plummeted by 7.01% to 112,100 yuan/ton, while spot prices rose, with battery-grade reaching 112,250 yuan/ton, amid complex supply-demand dynamics.

Futures Take a Steep Dive: March 14th marked a significant turning point for lithium carbonate futures, with the 2407 main contract experiencing a sharp decline of 7.01%. Opening at 119,500 yuan/ton and tumbling down to 112,100 yuan/ton by the close, the trading day was marked by volatility, culminating in a considerable drop in open interest by 16,029 to 210,848 lots.

Spot Prices Defy Trends: Contrary to the futures market, the spot market for battery-grade lithium carbonate displayed resilience, with prices ranging from 110,000 to 114,500 yuan/ton and an average settling at 112,250 yuan/ton, an increase of 1,250 yuan/ton from the previous day. The SMM battery-grade lithium carbonate index reflected this optimism, ascending to 110,684 yuan/ton, up by 1,556 yuan/ton, while industrial-grade lithium carbonate also saw a substantial increase in its price average to 107,200 yuan/ton, a rise of 2,250 yuan/ton.

Market Dynamics: Today’s market dynamics underscore the complex interplay between supply and demand factors. Lithium salt companies continued their focus on long-term contracts with spot sale prices remaining stable in the morning, amidst a backdrop of decreasing low-priced offerings. This round of price rebounds in the lithium carbonate market is primarily attributed to a negative feedback loop from the supply side, influenced by profitability challenges and environmental regulations, leading to a shortfall in the spot market circulation. This situation, coupled with a post-February consumption recovery, has driven a restocking rhythm among cathode and other downstream enterprises, resulting in a temporary misalignment between supply and demand.

Looking Ahead: As the industry anticipates the normalization of smelting operations and the arrival of imported lithium carbonate in the latter half of the month, a gradual restoration of domestic lithium carbonate spot supply is expected. This anticipatory outlook suggests that while today's market witnessed a pronounced dip in futures, the strengthening in spot prices indicates a robust demand foundation, with supply adjustments on the horizon poised to recalibrate market equilibrium.

Today's LiCarbonate Daily reveals a lithium market at a pivotal juncture, highlighting the nuanced dance between supply challenges, demand resilience, and the strategic maneuvers of market participants navigating through these dynamic conditions.

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

Inventory Futures market Market review Output SMM price price of metal metal prices Energy Storage EV Anode Materials New Energy new energy prices Lithium Prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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