SMM Daily Review: Lithium Carbonate Spot Prices Surge on Jan 7, Market Sentiment Mixed

[SMM Daily Review: January 7 Lithium Carbonate Spot Prices Continue to Rise]

The SMM battery-grade lithium carbonate index stood at 132,231 yuan/mt, up 6,226 yuan/mt from the previous working day. SMM Battery-grade lithium carbonate was quoted at 128,000-139,000 yuan/mt, with an average price of 133,500 yuan/mt, up 6,000 yuan/mt from the previous working day. SMM Industrial-grade lithium carbonate was quoted at 126,000-134,000 yuan/mt, with an average price of 130,000 yuan/mt, up 5,750 yuan/mt from the previous working day.

In early trading, the most-traded lithium carbonate futures contract opened more than 7% higher, touching 147,000 yuan/mt, before pulling back to around 140,000 yuan/mt and fluctuating. Currently, sentiment among upstream players is diverging, with some lithium chemical plants showing increased willingness to sell spot orders, while others are holding back supplies and adopting a wait-and-see approach. Downstream cathode material plants, on the other hand, are generally cautious, with limited acceptance of high prices. Their purchases are mainly for rigid demand, and some have adopted back-pricing strategies. Overall, spot prices are being driven up by rigid-demand transactions, but both upstream and downstream players are growing more watchful after the price increase.