【SMM Analysis】 A Review of This Week's Lithium Carbonate Price Trends (2024.07.22-2024.07.26)

This week (2024.07.22-2024.07.26), spot prices for lithium carbonate dropped significantly. The SMM battery-grade lithium carbonate index price fell from 86,038 yuan/mt to 84,709 yuan/mt, a decrease of 1,329 yuan/mt. The low-end price for battery-grade lithium carbonate dropped from 84,400 yuan/mt to 82,900 yuan/mt, the high-end price fell from 88,300 yuan/mt to 86,800 yuan/mt, and the average price decreased from 86,350 yuan/mt to 84,850 yuan/mt, a drop of 1,500 yuan/mt. For industrial-grade lithium carbonate, the low-end price fell from 80,800 yuan/mt to 79,200 yuan/mt, the high-end price dropped from 82,000 yuan/mt to 80,600 yuan/mt, and the average price decreased from 81,400 yuan/mt to 79,900 yuan/mt, a drop of 1,500 yuan/mt.

Bullish and bearish news from the Chilean earthquake and the U.S. presidential election came simultaneously, making it unclear which side had the upper hand. As a result, both lithium carbonate futures and spot market prices fluctuated significantly this week. Although material plants' long-term contracts and customer supply can meet basic production needs, there is no clear intention to stockpile overall. However, with the current downward trend in lithium carbonate prices, some material plants and traders are buying on dips. Some lithium salt plants, worried about future price trends, have eased their previous price-supporting sentiment to avoid excessive inventory buildup, making their quoting behavior more active.

From the actual supply and demand situation, an oversupply is indeed a foregone conclusion, and the current fundamentals of lithium carbonate continue to run weak.