Weekly Review: Spot Lithium Carbonate Fluctuated Downward from 3.16-3.19 [SMM Weekly Review]

This week, spot lithium carbonate prices fluctuated downward, with the price center moving further lower. Volatility in the futures market intensified, and the price range of the most-traded contract fluctuated down from 150,000-160,500 yuan/mt at the beginning of the week to 140,000-155,000 yuan/mt. After Thursday's (19th) midday session, it accelerated downward to around 140,000 yuan/mt, while open interest declined markedly.
Market trading showed the characteristics of “upstream sellers reluctant to sell, downstream buyers buying the dip,” and activity increased as prices fell. Upstream lithium chemical plants continued their strategy of holding back sales and holding prices firm this week, with spot order willingness to sell remaining weak. Downstream material plants maintained a buy-the-dip strategy: when futures prices fell to relatively low levels, some enterprises actively restocked, significantly boosting market trading activity; after prices rebounded, purchase willingness weakened rapidly. Overall, both market inquiries and actual transactions became more active as prices declined.
Looking ahead, the market is expected to maintain fluctuations in the short term. Upstream lithium chemical plants’ reluctance to sell provided some support to prices, but downstream purchasing remained mainly focused on buying the dip, lacking sustained momentum to chase higher prices. As the downstream purchasing and stockpiling cycle approaches, market trading is expected to become slightly more active by month-end.