LiCarbonate Daily - April 19th Edition

Market Overview and Price Movements:

Today's lithium carbonate market saw a slight decline, with the SMM battery-grade lithium carbonate index falling marginally by 24 yuan to 110,801 yuan/ton ($15,304.01 USD/ton). Prices for battery-grade lithium carbonate adjusted slightly downward, ranging from 109,800 yuan/ton ($15,165.75 USD/ton) to 113,000 yuan/ton ($15,607.73 USD/ton), with an average price reducing by 100 yuan to 111,400 yuan/ton ($15,386.74 USD/ton). Industrial-grade lithium carbonate also experienced a minor reduction, with prices moving between 107,500 yuan/ton ($14,848.07 USD/ton) and 109,500 yuan/ton ($15,124.31 USD/ton), averaging 108,500 yuan/ton (~$14,975.69 USD/ton).

Supply and Demand Dynamics:

The morning session witnessed some lithium salt producers continuing to hold firm on their spot prices, while a few adjusted their prices in response to market conditions, releasing spot orders at market prices. The majority of cathode producers continue to target lower-priced supplies or fulfill immediate needs, noting a general downward shift in price levels from trade market purchases. Recent continuous sales in the trade market and a weakening in futures trading warrant close attention to potential changes in the trade market's premium or discount rates.

Futures Market Trends:

The lithium carbonate (2407) main futures contract continued its downward trajectory, decreasing by 2.14%. It opened at 108,200 yuan/ton ($14,944.75 USD/ton) and closed at 107,700 yuan/ton ($14,875.69 USD/ton). Trading volume reached 172,997 lots, with open interest climbing by 1990 lots to 176,344 lots. The day's trading exhibited initial minor fluctuations with a slight upward trend, which stabilized before experiencing a significant drop towards the end of the morning session. The afternoon session saw stable fluctuations with a slight increase towards the close, yet the day ended with a 2.14% decline.

Market Sentiments and Strategic Adjustments:

Today's market reflects a cautious approach from both suppliers and buyers amidst slight price adjustments and market uncertainties. Lithium salt producers are balancing between maintaining firm prices and responding to market cues, while downstream players are strategically sourcing to optimize their costs in anticipation of further market developments. As stakeholders monitor the market for shifts in supply and pricing dynamics, strategic adjustments in purchasing and selling behaviors are likely as the market continues to navigate through these subtle yet impactful changes.

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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