LiCarbonate Daily Update - April 30th

Market Overview and Price Movements:

The lithium carbonate market saw a significant change today. The SMM battery-grade lithium carbonate index rose by 748 yuan to 111,624 yuan/ton (~$15,417.68 USD/ton). Battery-grade lithium carbonate prices ranged from 110,000 yuan/ton (~$15,193.37 USD/ton) to 113,500 yuan/ton (~$15,676.80 USD/ton), with an average price of 111,750 yuan/ton (~$15,435.08 USD/ton). Industrial-grade lithium carbonate prices moved between 108,500 yuan/ton (~$14,986.19 USD/ton) and 110,000 yuan/ton (~$15,193.37 USD/ton), averaging at 109,300 yuan/ton (~$15,096.69 USD/ton).

Supply Dynamics and Industry Response:

Many lithium salt producers raised their prices this morning, responding to a market that saw increased transaction prices with trade firms. Despite these price increases, downstream cathode producers report adequate stock levels from prior purchases, showing no urgency for new acquisitions and a cautious outlook on buying amid higher prices. This has led to a stagnant pre-holiday buying atmosphere, with trading firms more actively adjusting to the price changes.

Futures Market Trends:

The futures market contrasted sharply with the spot market. The lithium carbonate (2407) main futures contract fell by 2.15%, starting at 116,000 yuan/ton (~$16,022.10 USD/ton) and closing at 111,450 yuan/ton (~$15,393.65 USD/ton). The volume was high at 242,267 lots, but open interest dropped significantly, indicating a cooling interest among traders.

Market Sentiments and Future Outlook:

As the spot market shows signs of price stability and slight increases, the futures market's decline reflects broader concerns about future demand post-holiday. The market is currently navigating these mixed signals, assessing how shifts in buying behavior and policy impacts might influence future demand and pricing strategies. The dynamic between spot stability and futures volatility will be crucial for market participants as they plan their strategies moving forward.

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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