LiCarbonate Daily - June 17

Market Summary: On June 17, the lithium carbonate market experienced a decline, with the main 2407 futures contract falling by 1.44%. The futures opened at 96,500 yuan per ton (~13,310.34 USD/ton) and closed at 95,800 yuan per ton (~13,213.79 USD/ton). The trading volume was 77,371 contracts, and open interest decreased by 5,575 contracts to 121,045.

Spot Market Overview:

Battery-Grade Lithium Carbonate:

SMM index: 97,486 yuan per ton (~13,446.34 USD/ton), down by 814 yuan from the previous day.

Price range: 95,600 - 99,600 yuan per ton, with an average price of 97,600 yuan per ton (~13,462.07 USD/ton), down by 850 yuan.

Industrial-Grade Lithium Carbonate:

Price range: 92,400 - 94,400 yuan per ton, with an average price of 93,400 yuan per ton (~12,882.76 USD/ton), down by 1,000 yuan.

Market Dynamics:

Futures Performance: The main 2407 futures contract opened at 96,500 yuan per ton, experienced initial volatility, and then fluctuated around the daily average before ultimately closing down by 1.44%.

Spot Market Activity: Following the release of inventory by a major salt lake producer last Friday, transaction activity between upstream and downstream parties returned to subdued levels. Some lithium salt producers showed increased willingness to sell spot goods and are currently discussing pricing, although their psychological price levels remain high. Downstream cathode manufacturers continue to prioritize long-term agreements for June, showing little interest in additional purchases. Those that needed spot purchases last week have partly satisfied their needs from the salt lake release, and considering the end of the second quarter, downstream purchasing activity may slow further. Overall, spot transaction prices have declined.

Looking Forward:

Production and Sales:

Upstream producers are exploring new pricing strategies but are still holding high psychological price levels.

Purchasing Behavior:

Downstream buyers remain focused on long-term agreements, with limited spot purchasing activity. With the end of the second quarter approaching, downstream purchasing may slow further, maintaining downward pressure on prices.

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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