Weekly Review of the Lithium Carbonate Market: Pre-Holiday Stockpiling Nears Completion, Lithium Carbonate Prices Stabilize [SMM Weekly Review]

Lithium carbonate prices fluctuated within a narrow range this week, with the price center basically flat compared to last week. At the beginning of the week, the average spot prices of battery-grade lithium carbonate and industrial-grade lithium carbonate both edged up by 350 yuan/mt. Prices remained stable thereafter. Early in the week, supported by downstream stockpiling for the National Day holiday, spot prices continued to rise modestly. Entering the mid-to-late week, as pre-holiday stockpiling activities largely concluded, market trading activity declined, and prices gradually lost upward momentum, stabilizing. In the futures market, the most-traded contract fluctuated considerably within the range of 72,000 to 75,000 yuan/mt throughout the week. Its price volatility had some impact on spot market sentiment: when futures prices dipped, it stimulated some fixed-price procurement demand, but after prices rebounded, the market quickly returned to caution.

The supply structure remained stable, with spodumene-based lithium carbonate production accounting for over 60% of the market supply, continuing to serve as a solid pillar, while lepidolite-based production held around 15%. Judging from the overall supply-demand situation this month, the market remains in a pattern of simultaneous supply and demand growth, with demand growth relatively more pronounced. The market is expected to maintain a supply-demand tight balance throughout September.

Looking ahead, as the National Day holiday approaches, market trading activity is expected to turn sluggish.