LiCarbonate Daily - March 18th Overview

Published: Mar 18, 2024 18:16

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On March 18th, lithium carbonate futures increased by 3.00% to 116,900 yuan/ton, with spot prices mildly rising to an average of 112,550 yuan/ton, amidst strategic market adjustments.

Futures See Notable Increase: On March 18th, the lithium carbonate 2407 main contract enjoyed a 3.00% uplift, opening at 114,700 yuan/ton and closing at 116,900 yuan/ton. The trading activity was vibrant, with 333,726 transactions recorded, though open interest saw a slight dip, decreasing by 1,164 to 205,503. The day's trading pattern was marked by an initial upward fluctuation, ending the session on a high note despite a significant drop towards the close.

Spot Prices Edge Higher: The battery-grade lithium carbonate spot market witnessed a modest increase, with prices spanning from 110,000 to 115,100 yuan/ton and the average price reaching 112,550 yuan/ton, up by 300 yuan/ton from the previous day. This incremental rise reflects the market's gradual adjustment to current supply and demand dynamics.

Market Dynamics Shift: The SMM battery-grade lithium carbonate index climbed to 111,306 yuan/ton, marking an increase of 837 yuan/ton. Prices across the board showed a slight uptick, with industrial-grade lithium carbonate also registering growth, its average price ascending by 600 yuan/ton to 107,500 yuan/ton. Lithium salt companies continued their focus on long-term contracts, with some adjustments in spot prices observed from the last week, hinting at a cautious optimism among sellers.

Downstream Purchasing Patterns: Cathode manufacturers largely stuck to long-term and customer-supplied contracts as their primary procurement channels, with recent purchases adequately covering short-term production needs. Despite the availability of higher-priced spot offerings, the response from buyers remained tepid, indicating a preference for necessity-based purchasing amidst a cautious approach to inventory management.

Looking Forward: As the lithium carbonate market on March 18th showcases a balance between cautious supply adjustments and steady demand, the overall sentiment leans towards a strategic approach by both suppliers and buyers. With futures prices marking a significant increase and spot prices seeing a gentle rise, the market's current trajectory suggests a careful navigation through prevailing economic conditions, with an eye on sustainable growth and stability in the lithium sector.

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

Futures market Market review Output price of metal metal prices Energy Storage EV 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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