【SMM Analysis】Beginning to Reverse?! A Review of This Week's Lithium Carbonate Spot Price Trends (2024.08.26-2024.08.30)

This week (2024.08.26-2024.08.30), spot lithium carbonate prices continued to fluctuate. The SMM battery-grade lithium carbonate index price rose from 74,108 yuan/mt to 74,459 yuan/mt, an increase of 351 yuan/mt. The low end of battery-grade lithium carbonate prices increased from 72,000 yuan/mt to 73,000 yuan/mt, while the high end decreased from 76,400 yuan/mt to 76,200 yuan/mt. The average price rose from 74,200 yuan/mt to 74,600 yuan/mt, an increase of 400 yuan/mt. The low end of industrial-grade lithium carbonate prices increased from 69,350 yuan/mt to 69,800 yuan/mt, while the high end increased from 70,000 yuan/mt to 70,800 yuan/mt. The average price decreased from 69,675 yuan/mt to 70,300 yuan/mt, an increase of 625 yuan/mt. From this week's price trend, the SMM battery-grade lithium carbonate index price fluctuated between 74,000 yuan/mt and 74,500 yuan/mt.

After a prolonged period of price declines, spot lithium carbonate prices have finally turned upward. Downstream material plants and battery cell manufacturers are preparing for the traditional peak season of "September-October," significantly increasing production schedules. On the supply side, under the pressure of previous losses, some lithium salt smelters have continued to reduce production, leading to a sustained decline in overall operating rates. In the context of reduced supply and increased demand, lithium carbonate has experienced a long-awaited weekly inventory reduction. This positive sentiment has led to varying degrees of rebound in both lithium carbonate futures and spot prices. In the short term, if the downstream material plants and battery cell manufacturers continue to ramp up production and the lithium salt smelters that have reduced or halted production do not resume operations, the domestic supply of lithium carbonate may remain stable, potentially providing some support or slight increase to spot prices.

It is worth noting that although the monthly surplus has narrowed to a tight balance, attention should also be paid to the cumulative inventory of lithium carbonate. From a long-term price trend perspective, the actual supply-demand relationship should be the main guiding factor. Stay rational!