Lithium Ore 8.21-8.28 Market Update [SMM Weekly Review]

This week, lithium ore prices fell rapidly along with lithium carbonate, with a cumulative decline of nearly $50/mt within the week. The volatility in lithium carbonate intensified, sharply increasing the pressure of losses on upstream miners, who showed a strong sentiment to refuse to budge on prices and were reluctant to sell; meanwhile, downstream chemical plants and traders used the method of deducting processing costs from futures to back-calculate lithium ore prices, continuously lowering their psychological purchase price levels. With the release of profits from earlier hedging positions, the willingness to restock actually strengthened. Market inquiries were active, but due to the mismatch in price expectations between both parties, actual transactions remained sluggish.

Regarding lepidolite, as lithium chemicals prices continued to fall, non-integrated chemical plants faced an expanding risk of losses, becoming more cautious in procurement, and their psychological price levels also declined in tandem with lithium carbonate. Although leading miners this week released shipments through auctions, the transaction prices at the auctions were significantly higher than what the downstream market could accept, providing limited guidance for the spot market, further fueling a wait-and-see sentiment.