Market Overview and Price Movements:

The lithium carbonate market observed a minor decline today, with the SMM battery-grade lithium carbonate index decreasing by 498 yuan to 110,678 yuan/ton ($15,265.93 USD/ton). Prices for battery-grade lithium carbonate ranged from 109,500 yuan/ton ($15,103.45 USD/ton) to 113,000 yuan/ton ($15,586.21 USD/ton), settling at an average of 111,250 yuan/ton ($15,344.83 USD/ton), down by 500 yuan. Industrial-grade lithium carbonate also saw prices decrease, ranging from 107,500 yuan/ton ($14,827.59 USD/ton) to 109,500 yuan/ton ($15,103.45 USD/ton) with an average settling at 108,500 yuan/ton (~$14,965.52 USD/ton), reflecting a drop of 500 yuan.

Supply Dynamics and Downstream Demand:

While the majority of lithium salt producers held their pricing steady, some made minor adjustments by lowering prices on select spot orders. Downstream cathode manufacturers reported that due to earlier low-price purchases and replenishments under long-term contracts, their current raw material supplies are adequate. As preparations for the Labor's Day holiday are nearing completion, there is a heightened wait-and-see approach during this high-price period, with purchases being strategically made during lower price windows, leading to a slight downward shift in overall market price levels.

Futures Market Trends:

In the futures market, the lithium carbonate (2407) main contract experienced a slight decline of 0.90%. The contract opened at 109,800 yuan/ton ($15,144.83 USD/ton) and closed slightly higher at 109,900 yuan/ton ($15,158.62 USD/ton), with a trading volume of 98,463 lots and open interest decreasing by 3,542 lots to 172,606. The trading day saw initial price drops followed by a rise, stabilizing into a steady fluctuation pattern until closing with a minor decrease.

Market Sentiments and Strategic Adjustments:

Today’s market dynamics showcase a cautious outlook from buyers who are closely monitoring price movements and adjusting their purchasing strategies accordingly. With a general trend towards stabilization in raw material supplies among downstream sectors, there is less urgency to secure additional stock at current prices. As stakeholders continue to gauge the market’s direction, the overall sentiment remains watchful, with strategic buying occurring more opportunistically to leverage favorable pricing conditions.

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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