Weekly Review of the Lithium Carbonate Market: Market Trading Sluggish, Lithium Prices in the Doldrums [SMM Weekly Review]

This week, lithium carbonate prices showed a fluctuating trend, rising first and then falling, with the overall center moving downward. Price-wise, the average battery-grade lithium carbonate price dropped from 81,000 yuan/mt at the beginning of the week to 80,400 yuan/mt, while the average industrial-grade lithium carbonate price fell from 78,800 yuan/mt to 78,200 yuan/mt, accumulating a decline of 600 yuan/mt. The most-traded lithium carbonate futures contract's fluctuation range shifted downward to 77,800-80,900 yuan/mt, with price movements mainly driven by market sentiment, particularly pressured by market rumors that some mines in the Yichun area resumed production earlier than expected.

Supply side, lithium chemical plants' overall operating rates remained high, with sufficient capacity release. Among them, both spodumene and salt lake operating rates stayed above 60%, becoming the main supply sources. Domestic lithium carbonate production in November is expected to maintain October's level, roughly flat MoM. Demand side, the EV market saw rapid growth in both commercial and passenger NEVs; the ESS market experienced strong supply and demand, with supply remaining tight.

Looking ahead, battery cell and cathode material production schedules continued to improve in November, and lithium carbonate is expected to see significant destocking in November.