[SMM Analysis]This week, the price of lithium carbonate fluctuated upward, with the market facing numerous challenges

This week, the lithium carbonate market has shown a certain fluctuating upward trend, but the overall market still faces numerous challenges. The SMM battery-grade lithium carbonate index price rose from 64,808 yuan/mt to 65,061 yuan/mt, with a cumulative increase of 253 yuan/mt. The average price of battery-grade lithium carbonate increased from 64,600 yuan/mt to 64,800 yuan/mt, with a cumulative increase of 200 yuan/mt. The average price of industrial-grade lithium carbonate rose from 62,950 yuan/mt to 63,150 yuan/mt, also with a cumulative increase of 200 yuan/mt. The price center of spot lithium carbonate transaction prices has shown a slight upward fluctuation.

From the perspective of market transactions, the purchase willingness of downstream enterprises has been relatively weak, with the overall demand level primarily met through customer-supplied and long-term agreement supplies. Under the pressure of cost losses, upstream lithium chemical plants have demonstrated a strong sentiment to stand firm on quotes, with current transactions mainly occurring between traders and downstream enterprises. Within the 90-day tariff exemption period of the US's latest tariff policy on China, there may be an expectation of a rush in exports of Chinese ESS battery cells, thereby driving up the demand for lithium carbonate. However, considering the relatively high cumulative inventory levels of lithium carbonate and the continuous decline in ore prices to new lows, cost support has continued to weaken, resulting in a fluctuating trend of lithium carbonate prices at lows, with prices more likely to fall than rise.