Weekly Review of Lithium Carbonate Market: Lithium Carbonate Prices Retreat After Rapid Rise [SMM Weekly Review]

Spot lithium carbonate prices retreated after a rapid rise this week, with the earlier upward momentum easing on Thursday. The average price of SMM battery-grade lithium carbonate surged rapidly from 152,000 yuan/mt at the beginning of the week (January 12) to a high of 163,000 yuan/mt on Wednesday (January 14), before pulling back to 159,000 yuan/mt on Thursday (January 15). The price center for the week moved up significantly, with a cumulative increase of about 7,000 yuan/mt. Industrial-grade lithium carbonate showed a similar trend, with the average price rising from 148,500 yuan/mt to 155,500 yuan/mt. The futures market experienced sharp volatility; the price range for the most-traded contract, starting from around the limit-up price of 156,000 yuan/mt at the beginning of the week, once climbed to 173,400 yuan/mt, then fluctuated considerably within the 155,600-165,000 yuan/mt range, with limit-up movements occurring consecutively mid-week.

Market trading sentiment shifted along with price fluctuations. During the initial rapid price increase phase at the start of the week, the fast-rising lithium carbonate prices led to a divergence in upstream willingness to sell: some lithium chemical plants held a wait-and-see attitude, reluctant to sell, while others actively offered prices, even significantly higher than the current spot transaction levels. However, downstream acceptance of high prices was generally weak, with procurement mainly driven by rigid demand, and wait-and-see sentiment was strong. As prices retreated from the highs on Thursday, inquiry and procurement activity from downstream material plants increased, showing a mild recovery, especially when prices were relatively low.