LiCarbonate Daily - June 12

Market Summary: On June 12, the lithium carbonate market saw a slight increase, with the main 2407 futures contract rising by 0.2%. The futures opened at 97,500 yuan per ton (~13,448.28 USD/ton) and closed at 98,450 yuan per ton (~13,579.31 USD/ton). The trading volume was 143,742 contracts, and open interest decreased by 12,299 contracts to 140,001.

Spot Market Overview:

Battery-Grade Lithium Carbonate:

SMM index: 99,273 yuan per ton (~13,692.83 USD/ton), down by 863 yuan from the previous day.

Price range: 97,000 - 101,900 yuan per ton, with an average price of 99,450 yuan per ton (~13,717.24 USD/ton), down by 900 yuan.

Industrial-Grade Lithium Carbonate:

Price range: 94,400 - 96,600 yuan per ton, with an average price of 95,500 yuan per ton (~13,172.41 USD/ton), down by 1,000 yuan.

Market Dynamics:

Futures Performance: The main 2407 futures contract opened at 97,500 yuan per ton and initially trended downward until the end of the morning session. In the afternoon, bullish forces entered the market, driving prices up, and the contract ultimately closed up by 0.2%.

Spot Market Activity: Spot prices continued to follow the downward market sentiment. Most transactions were based on long-term agreements. Although some lithium salt producers were willing to sell spot goods, their quotes were higher than the downstream buyers' expectations, resulting in few transactions. Downstream cathode manufacturers remained cautious and preferred to wait and see, given the high proportion of customer-supplied materials in June. The ongoing decline in lithium carbonate prices has made buyers more cautious about managing their inventories. Some companies indicated no need to purchase spot goods in June.

Looking Forward:

Production and Sales:

Upstream producers continue to face challenges in meeting price expectations from downstream buyers, resulting in minimal spot transactions.

Purchasing Behavior:

Downstream buyers remain cautious, focusing on long-term agreements and managing their inventories carefully. The market is expected to remain weak in the near term due to ongoing price declines and limited demand.

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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