Overview of Market Dynamics:

Today’s lithium carbonate market witnessed a notable downturn. The SMM battery-grade lithium carbonate index decreased to 111,085 yuan/ton (~15,343.23 USD/ton), down by 956 yuan. In tandem, the main futures contract for lithium carbonate (2407) saw a significant decline of 3.78%, opening at 111,400 yuan/ton (~15,386.74 USD/ton) and plunging to 108,150 yuan/ton (~14,937.85 USD/ton). This decline in futures was reflected in the spot price for battery-grade lithium carbonate, which ranged from 110,000 yuan/ton (~15,193.37 USD/ton) to 113,000 yuan/ton (~15,607.73 USD/ton), with the average settling at 111,500 yuan/ton (~15,400.55 USD/ton), down by 1,250 yuan. Industrial-grade lithium carbonate also saw a decrease, ranging from 107,800 yuan/ton (~14,889.50 USD/ton) to 109,500 yuan/ton (~15,124.31 USD/ton), with the average at 108,700 yuan/ton (~15,013.81 USD/ton), down by 1,000 yuan.

Market Sentiments and Responses:

Despite the downward trend, the sentiment among lithium salt producers remained relatively firm. Although there were some reductions in quotations, the majority of adjustments were modest, with prices still near the higher end of the spectrum. Only a few lithium salt companies made significant downward adjustments. On the buyer's side, cathode manufacturers demonstrated caution. As prices fell, these downstream companies adopted a wait-and-see attitude, opting to make selective low-priced purchases through a few lithium salt companies and traders to supplement their spot needs beyond long-term agreements. However, this did not translate into a significant restocking effort in the spot market.

Concluding Market Observations:

Today’s overall center of gravity for lithium carbonate spot market prices shifted downward, reflecting a cautious response from buyers amid lower prices and a still relatively strong price support from sellers. The day ended with a marked decrease in both futures and spot markets, showcasing the volatility and complex interplay of supply-demand dynamics in the lithium market. This cautious market sentiment, paired with strategic purchasing decisions by downstream sectors, points to an ongoing adjustment phase where stakeholders are closely monitoring price movements and adjusting their strategies accordingly.

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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