SMM Daily Review: Spot Lithium Carbonate Edged Down on July 31

[SMM Daily Review: Spot Lithium Carbonate Edges Down on July 31]

Today, SMM battery-grade spot lithium carbonate prices edged down slightly from the previous working day. In futures, the lithium carbonate 2609 contract opened low at 143,900 yuan/mt today, briefly shot up to 144,400 yuan/mt before being pressured by bears, and prices consolidated lower and broke below the average price line. During the morning session, prices fluctuated weakly in the 142,000–143,500 yuan/mt range; near midday, bears intensified pressure, and prices rapidly dropped to around 140,000 yuan/mt. In the afternoon, prices consolidated at lows, and near the close, bears pressed again, causing prices to slide further and hit a fresh intraday low of 137,800 yuan/mt. The contract ultimately closed down 4.84% at 137,800 yuan/mt, with open interest decreasing by 3,001 lots.

In the spot market, at month-end, the downstream procurement pace slowed, with purchasing on dips as needed dominating. Upstream lithium chemical plants continued to hold spot order prices firm, and long-term contract volume additions increased. Overall, market inquiries and actual transactions were relatively stable. In July, affected by maintenance at lithium chemical plants using both spodumene and lepidolite routes, China's lithium carbonate production saw a notable decline. Entering August, although maintenance at plants relying on spodumene and lepidolite continues, salt lake lithium extraction benefited from warmer weather, and output climbed significantly, which is expected to effectively supplement overall supply. Overall, China's total lithium carbonate production in August is expected to increase by 7% MoM.