LiCarbonate Daily - June 11

Published: Jun 11, 2024 17:56

Source: SMM

Save

On June 11, lithium carbonate futures fell 3.72% to 97,000 yuan/ton (~13,379.31 USD/ton). The battery-grade index dropped to 100,136 yuan/ton (~13,811.86 USD/ton).

Market Summary: On June 11, the lithium carbonate market experienced a significant decline, with the main 2407 futures contract falling by 3.72%. The futures opened at 100,000 yuan per ton (~13,793.10 USD/ton) and closed at 97,000 yuan per ton (~13,379.31 USD/ton). The trading volume was 104,245 contracts, and open interest decreased by 2,504 contracts to 152,300.

Spot Market Overview:

Battery-Grade Lithium Carbonate:
- SMM index: 100,136 yuan per ton (~13,811.86 USD/ton), down by 816 yuan from the previous day.
- Price range: 98,200 - 102,500 yuan per ton, with an average price of 100,350 yuan per ton (~13,841.38 USD/ton), down by 825 yuan.
Industrial-Grade Lithium Carbonate:
- Price range: 95,500 - 97,500 yuan per ton, with an average price of 96,500 yuan per ton (~13,310.34 USD/ton), down by 850 yuan.

Market Dynamics:

Futures Performance: The main 2407 futures contract opened at 100,000 yuan per ton, initially rose, but then declined steadily throughout the day, closing down by 3.72%.
Spot Market Activity: The spot market prices continued to weaken. As the fundamental outlook for June remains weak, more upstream lithium salt producers have lowered their spot prices and adjusted their psychological selling prices. Although the number of inquiries and quotes in the market has improved compared to previous periods, actual purchasing sentiment from downstream buyers remains subdued. Most downstream enterprises are only making purchases based on long-term agreements and still find the current prices higher than their expectations. This has resulted in a general downward shift in the focus of spot transaction prices.

Looking Forward:

Production and Sales:
- Upstream producers are increasingly lowering spot prices and adjusting selling expectations due to weak market fundamentals.
Purchasing Behavior:
- Downstream buyers remain cautious, with most purchases based on long-term agreements. High inventory levels and price expectations continue to influence their purchasing decisions, leading to limited activity in the spot market.

* You can subscribe to LiCarbonate Daily and it will be sent to your email daily; To subscribe, simply send an email to me : robinhe@smm.cn *

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

Inventory Futures market Market review SMM price price of metal metal prices Energy Storage EV New Energy new energy prices Lithium Prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 hours ago

[SMM Weekly Review] The cobalt sulphate market remained generally sluggish this week, but market sentiment for procurement recovered compared to the previous period, supported by positive news from the upstream mining sector.

This week, the cobalt sulphate market remained largely sluggish overall. However, supported by positive news from the upstream mining sector, market purchasing sentiment showed some recovery compared to the previous period. Supply side, as the Chinese New Year holiday approaches, most smelters have successively arranged for production halts and maintenance. Combined with mining news strengthening bullish expectations for the future market, some enterprises have chosen to suspend quotations, while those maintaining quotations have raised their target prices to 96,000-98,000 yuan/mt. Demand side, due to concerns about a rapid price increase for cobalt sulphate after the holiday, downstream enterprises' purchase willingness has strengthened. It is reported that some companies' purchase intention prices for high-nickel cobalt sulphate have rebounded to 92,000 yuan/mt, while the purchase intention prices for low-nickel cobalt sulphate are in the range of 95,000-96,000 yuan/mt. Overall, as logistics gradually halt before the Chinese New Year, actual market transactions are expected to be quite limited next week, and cobalt sulphate prices are likely to remain largely stable. After the holiday, as downstream enterprises gradually resume procurement, prices may regain an upward trend.

9 hours ago

[SMM Weekly Review] The domestic refined cobalt market experienced limited overall changes this week, with spot prices fluctuating at lows.

This week, the domestic refined cobalt market saw limited overall changes, with spot prices fluctuating at lows. Supply side, affected by the decline in futures prices, mainstream smelters' spot premiums were too high, leading them to lower ex-factory prices; traders were bullish on the market outlook, hedgers raised spot-futures price spread quotes, while some unilateral speculators temporarily suspended quotations to observe the market. Demand side, as prices gradually stabilized, purchase willingness among some end-users recovered, with mainstream transaction prices concentrated in the range of 415,000–420,000 yuan/mt. Fundamentally, this round of price correction in domestic refined cobalt was mainly driven by market capital fluctuations and the broad decline in other metal prices. In the short term, as cobalt intermediate products still cannot arrive at ports in large quantities, the tight supply pattern of upstream raw materials has not fundamentally changed, and refined cobalt prices are expected to remain supported on the downside.

9 hours ago

[SMM Weekly Review] The cobalt intermediate products market remained in a state of "quoted prices without actual transactions" this week, with prices stabilizing in the range of $25.5-$26.0/lb.

The cobalt intermediate products market remained in a state of nominal pricing with thin trading this week, with prices holding steady in the range of $25.5–26.0/lb. News such as the US "stockpiling plan" and the acquisition of certain cobalt mining rights of overseas miners by US-funded enterprises heightened market concerns about cobalt raw material shortages in China in 2026, strengthening suppliers' willingness to hold prices firm. However, as the year-end approaches, some smelters have entered the stage of clearing production lines and preparing for shutdowns, leading to a noticeable decline in purchase willingness and resulting in sluggish actual market transactions. Overall, against the backdrop of large-scale arrivals of cobalt intermediate products remaining distant, increased geopolitical risks are expected to exacerbate the structural tightness of domestic intermediate products, maintaining upward pressure on prices.

9 hours ago