Weekly Review of the Lithium Carbonate Market: Trading Sluggish on the First Working Day After the Holiday, Lithium Carbonate Prices Stabilize [SMM Weekly Review]

This week, lithium carbonate prices fluctuated within a limited range, with the price center basically flat WoW. The SMM battery-grade lithium carbonate index stood at 73,446 yuan/mt, down 42 yuan/mt from the previous working day. Battery-grade lithium carbonate was priced at 72,900-74,200 yuan/mt, with an average of 73,550 yuan/mt, flat from the previous working day; industrial-grade lithium carbonate was priced at 70,700-71,900 yuan/mt, averaging 71,300 yuan/mt, also flat from the previous working day. Trading was sluggish on the first working day after the holiday, with both upstream and downstream players adopting a wait-and-see attitude. In the futures market, prices continued a fluctuating trend, with the most-traded contract fluctuating between 72,600-75,300 yuan/mt.

In terms of supply, new production lines were commissioned in both spodumene and salt lake sectors, and total lithium carbonate production in October is expected to maintain growth potential. Demand side, the EV market saw rapid growth in both commercial and passenger NEVs; the ESS sector experienced robust supply and demand.

Looking ahead, although supply is growing steadily in October, strong demand from the EV and ESS sectors is expected to drive the market into a significant destocking phase, likely resulting in a temporary supply tightness.