LiCarbonate Daily - Overview for March 25th

Significant Decline in Futures Market: The futures market witnessed a dramatic downturn on March 25th, with the lithium carbonate 2407 main contract plummeting by 6.61%. Opening at 114,650 yuan/ton and closing significantly lower at 107,400 yuan/ton, the contract saw a high trading volume of 323,927 with open interest increasing to 206,188, up by 5,555 from the previous session. The trading day was characterized by initial mild fluctuations followed by a sharp decline in the afternoon, culminating in a significant drop.

Spot Market Remains Steady Amidst Futures Volatility: Despite the tumult in the futures market, the spot prices for battery-grade lithium carbonate remained stable, quoted between 110,000 and 115,100 yuan/ton, with the average price holding steady at 112,550 yuan/ton. The SMM battery-grade lithium carbonate index slightly decreased by 84 yuan to 111,548 yuan/ton, indicating minor adjustments in the spot market, with average prices for battery-grade lithium carbonate adjusting down by 100 yuan to 112,400 yuan/ton, and industrial-grade lithium carbonate also seeing a reduction in its average price by 100 yuan to 107,900 yuan/ton.

Market Sentiments and Adjustments: Lithium salt companies continued their preference for long-term contract sales while maintaining a firm stance on spot sales of lithium carbonate, albeit with slight price adjustments by some. The market's overall transaction price center showed signs of decline, driven by the actions of trade companies adjusting their lithium carbonate prices in line with market movements and opportunistically making purchases at lower prices. This has led to a cautious but noticeable downward trend in spot market transaction prices.

Concluding Thoughts: March 25th brought a stark contrast between the futures market's significant decline and the spot market's relative stability, underscoring the dynamic and complex nature of the lithium carbonate market. With lithium salt companies and cathode manufacturers navigating through these fluctuations, the market's resilience in spot pricing amidst futures volatility highlights a cautious optimism among stakeholders, adapting to shifts with strategic pricing and purchasing decisions.

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