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

This week, spot lithium carbonate prices exhibited a considerably fluctuating trend characterized by a retreat after a rapid rise. The SMM battery-grade lithium carbonate average price retreated from a high of 181,500 yuan/mt at the beginning of the week (January 26) to 168,000 yuan/mt by Thursday (January 29) after three consecutive trading days of pullback, marking a cumulative decline of 13,500 yuan/mt. The industrial-grade lithium carbonate average price dropped from 178,000 yuan/mt to 164,500 yuan/mt, also a cumulative decrease of 13,500 yuan/mt. Futures market fluctuations were more pronounced, with the price range of the most-traded contract swinging significantly from 163,500-189,400 yuan/mt at the start of the week to 158,800-173,900 yuan/mt.

In terms of actual market transactions, purchasing was generally cautious when prices were high early in the week, with the market primarily in a wait-and-see mode. As lithium carbonate prices continued to pull back from their peaks, purchase willingness from downstream material plants gradually strengthened. Particularly when prices fell to relatively low levels, spot order purchases increased to meet rigid demand and for February stockpiling, driving more active overall market inquiries and transactions. Lithium chemical plants flexibly adjusted their quotations and willingness to sell in response to fluctuations in futures prices.