LiCarbonate Daily - April 3rd Update

Market Trends and Analysis:

The SMM battery-grade lithium carbonate index for today is at 110,654 yuan/ton (~15,283.70 USD/ton), up by 374 yuan from the previous day. Prices for battery-grade lithium carbonate ranged between 109,600 yuan/ton (~15,138.12 USD/ton) and 112,500 yuan/ton (~15,538.67 USD/ton), with an average price of 111,050 yuan/ton (~15,338.40 USD/ton), an increase of 300 yuan/ton. Industrial-grade lithium carbonate saw its average price rise to 107,000 yuan/ton (~14,781.21 USD/ton), up by 750 yuan/ton.

This increase in the lithium carbonate index and prices is attributed to the current supply-demand dynamics. With smelting enterprises previously holding back sales during a dip in lithium salt prices, the market circulation stocks gradually depleted, tightening supply. This situation was exacerbated by releases and auctions from certain salt lake enterprises and salt companies, fostering a strong sentiment for price support.

On the demand side, with downstream cathode end generally maintaining low inventory levels and not holding much stock on hand, the market continues to engage in just-in-time purchasing, even as spot prices rise, pushing the transaction focus upward.

Futures Market Movement:

The lithium carbonate (2407) main contract saw a 0.22% increase, opening at 111,550 yuan/ton (~15,407.46 USD/ton) and closing at 111,800 yuan/ton (~15,441.99 USD/ton). The trading volume reached 199,227 lots, with open interest decreasing by 8,111 lots to 183,070 lots. The trading day experienced a significant rise after opening, followed by stable fluctuations and a sharp fall towards the end, which briefly dropped to a 0.54% decrease, before recovering slightly to close with a 0.22% increase.

Concluding Insights:

Today's market reflects a positive adjustment in both the spot and futures markets for lithium carbonate. The combined effects of tight supply, due to strategic withholdings by producers, and consistent demand from downstream buyers, have applied upward pressure on prices. This balance, along with cautious market dynamics, continues to adjust and shape expectations for future movements, making the lithium carbonate market an area of keen interest for stakeholders.

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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