[SMM Daily Review: Lithium Carbonate Spot Prices Continued to Decline on January 16]

The SMM battery-grade lithium carbonate index stood at 159,477 yuan/mt, down 783 yuan/mt from the previous working day. Battery-grade lithium carbonate was quoted at 154,000-162,000 yuan/mt, with an average price of 158,000 yuan/mt, down 1,000 yuan/mt from the previous working day. Industrial-grade lithium carbonate was quoted at 150,000-159,000 yuan/mt, with an average price of 154,500 yuan/mt, down 1,000 yuan/mt from the previous working day.

The most-traded lithium carbonate futures contract showed a volatile decline during the day, with a drop of nearly 9%, and hit the lower limit several times at 146,200 yuan/mt. The price fluctuation range was between 146,200 yuan/mt and 165,800 yuan/mt. After the midday break, it hit the lower limit again and remained locked until the close. In terms of trading, upstream spot order willingness to sell was generally low. As prices continued to fall, upstream reluctance to sell gradually intensified, with some enterprises adopting strategies such as not quoting spot orders and actively stockpiling. Downstream, lower prices drove a rebound in purchase willingness. Some material producers still had procurement gaps due to rigid demand, while others considered stockpiling to replenish inventories at relatively low prices. In addition, market inquiry activity increased, and traders’ willingness to sell also strengthened compared with the previous period.