[SMM Analysis]Lithium carbonate prices rose slightly, but market transactions were sluggish

This week, the spot price of lithium carbonate showed a slight upward trend. The average price of battery-grade lithium carbonate rose slightly from 60,250 yuan/mt to 60,650 yuan/mt, while the average price of industrial-grade lithium carbonate also increased from 58,650 yuan/mt to 59,050 yuan/mt, with cumulative increases of around 400 yuan/mt for both. Despite the continuous upward shift in the price center, actual market transactions remained sluggish.

Supply side, the weekly output of lithium carbonate continued to increase, primarily due to the phased rebound in the futures market in the earlier period, which boosted the production enthusiasm of some lithium chemical plants. Demand side, downstream material plants showed weak procurement enthusiasm and had no further intention to build inventory, waiting for prices to decline further. The price game between upstream and downstream led to continued sluggishness in market transaction activity, with a significant gap in the psychological price levels between buyers and sellers.

Macro perspective, factors such as the Sino-US tariff policy negotiations had a certain impact on market sentiment, leading to a phased rebound in futures prices. However, the performance of the spot market lagged relatively, and the spread between futures and spot prices widened. On the cost side, lithium ore prices remained stable, providing some support for lithium carbonate prices. However, end-use demand had not yet shown significant improvement. Coupled with the current high inventory levels, the market remained cautious about the outlook.