Market Overview and Price Movements:
Today's lithium carbonate market experienced a slight decline, with the SMM battery-grade lithium carbonate index decreasing to 110,714 yuan/ton ($15,270.90 USD/ton), down by 161 yuan. Battery-grade lithium carbonate prices ranged from 109,500 yuan/ton ($15,103.45 USD/ton) to 113,000 yuan/ton ($15,586.21 USD/ton), with the average price decreasing by 150 yuan to 111,250 yuan/ton ($15,344.83 USD/ton). Industrial-grade lithium carbonate also saw a decrease, with prices moving between 107,000 yuan/ton ($14,758.62 USD/ton) and 109,500 yuan/ton ($15,103.45 USD/ton), and the average price dropping by 250 yuan to 108,200 yuan/ton (~$14,924.14 USD/ton).
Supply Dynamics and Downstream Demand:
Lithium salt producers continued to maintain a firm pricing strategy, mostly selling spot orders at sustained prices. Downstream cathode manufacturers have been engaging in more selective, low-priced purchases from the trade market to supplement supplies outside of long-term contracts and prepare for the Labor's Day holiday stockpiling. This has caused a slight reduction in overall transaction prices in the spot market. Some downstream entities have completed their preparations for the upcoming holiday and are currently adopting a wait-and-see approach, anticipating potentially lower or more favorable pricing before committing to necessary purchases.
Futures Market Trends:
The lithium carbonate (2407) main futures contract saw a decline of 2.14%. It opened at 108,200 yuan/ton ($14,924.14 USD/ton) and dropped to a low of 107,100 yuan/ton ($14,772.41 USD/ton) before rebounding and closing at 107,700 yuan/ton (~$14,855.17 USD/ton). The trading day started with a rise followed by a drop, stabilizing with fluctuations and ending with a decrease. Trading volume was at 172,997 lots, with open interest decreasing by 1,281 lots to 176,344 lots.
Market Sentiments and Strategic Adjustments:
Today's slight drop in prices across both spot and futures markets indicates a cautious but adjusting market environment. Downstream buyers are closely monitoring price movements, optimizing their purchasing strategies based on market conditions and upcoming demand forecasts post-holiday. Suppliers, maintaining stable but firm pricing, are balancing market supply with cautious optimism about future demand dynamics. As stakeholders navigate these adjustments, the market is expected to remain responsive to shifts in supply-demand balance and external economic factors.
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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
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