LiCarbonate Daily - April 2nd Update

Market Overview:

The SMM battery-grade lithium carbonate index saw a significant rise today, reaching 110,280 yuan/ton, which is an increase of 1,473 yuan/ton from the previous working day. The price range for battery-grade lithium carbonate adjusted upward to 109,000-112,500 yuan/ton, with the average price settling at 110,750 yuan/ton, up by 1,000 yuan/ton. Industrial-grade lithium carbonate also experienced a hike, with its prices moving to 105,000-107,500 yuan/ton, and the average price increasing by 1,500 yuan/ton to 106,300 yuan/ton.

This upward trend in the market is attributed to several factors. Recently, most salt factories have revised their quotations upward, primarily due to the general rise in metal prices, strong expectations for price corrections following a rapid decline in lithium carbonate futures, and higher-than-expected release prices from a major Qinghai factory, which in turn has bolstered the price support mentality among upstream smelting end manufacturers. Meanwhile, the demand side has shown relative stability, with overall purchases maintaining a balance of long-term contracts and a small amount of spot buying, leading to a slight upward shift in the market's overall transaction focus.

Futures Market Movement:

The main futures contract for lithium carbonate (2407) witnessed a 1.14% increase, opening at 112,800 yuan/ton and closing at 111,000 yuan/ton. The trading volume was recorded at 186,425 lots, with open interest decreasing by 8,918 lots to 191,181 lots. This day's price movement was characterized by minor fluctuations and a downward trend in the early trading hours, followed by a rebound and a brief rise in the mid-session before stabilizing and closing higher.

Concluding Analysis:

Today's lithium carbonate market highlights a positive adjustment in both the spot and futures segments. With an overall increase in prices across the board, the market dynamics suggest a robust demand for lithium carbonate, coupled with a strong pricing sentiment from the supply side. These trends reflect a broader anticipation of continued growth in the lithium market, driven by the rising metal prices and adjustments in supply strategies. As the market evolves, stakeholders will need to closely monitor these trends for effective navigation through the lithium carbonate landscape.

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If you have any questions regarding the recent movement of lithium carbonate market (e.g. what caused it and 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