This week, spot lithium carbonate prices showed a trend of "falling first and then rising, with an overall fluctuating upward movement." The SMM battery-grade lithium carbonate average price fell from 151,000 yuan/mt at the start of the week (January 19) and then rebounded, rising to 164,500 yuan/mt by Thursday (January 22), a cumulative increase of 13,500 yuan/mt. The industrial-grade lithium carbonate average price rose from 147,500 yuan/mt to 161,000 yuan/mt, also a cumulative increase of 13,500 yuan/mt. Futures market fluctuations were more significant; the price range for the most-traded contract fluctuated upward from 142,100-151,100 yuan/mt at the beginning of the week to 162,000-174,100 yuan/mt, and hit the daily limit-up price at the mid-week (20th) close, indicating substantial swings in market sentiment.
Market trading activity varied with price fluctuations. When prices fell at the start of the week, upstream lithium chemical plants showed reduced willingness to sell spot orders, with a tendency to hold back sales emerging. As prices subsequently rebounded consecutively, some upstream enterprises saw increased offer prices and willingness to sell. Meanwhile, purchasing activity from downstream material plants gradually became more active, primarily to meet rigid demand and prepare stockpiles for February, which boosted overall market inquiries and trading activity.
Supply side, production line maintenance began; demand side, signs of pre-holiday stockpiling appeared. In terms of supply, some lithium chemical plants began scheduling maintenance plans, which is expected to lead to some reduction in production. Demand side, downstream material plants, on the basis of purchasing as needed, started stockpiling for February production, providing some support for spot demand.
