LiCarbonate Daily - June 11

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.

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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