SMM Daily Review: 5 August – Spot lithium carbonate prices rose amid volatility

[SMM Daily Review: 5 August – Spot lithium carbonate prices rose amid volatility]

Today, SMM’s spot price for battery-grade lithium carbonate rose amid volatility compared with the previous trading day. The lithium carbonate 2609 contract opened lower today at 139,700 yuan per metric tonne; after briefly dipping to 138,300 yuan per metric tonne following the opening, it found support, with long positions driving a volatile rebound; during the morning session, the price fluctuated firmly within the 140,000–142,000 yuan range; although there were some fluctuations, the price centre gradually shifted upwards; around midday, bulls and bears engaged in a tug-of-war within the 141,500–142,500 yuan range; In the afternoon, bulls continued to exert pressure, driving the price to rise in a choppy manner. As the session drew to a close, a concentrated influx of capital caused the price to surge rapidly to 144,300 yuan per tonne, setting an intraday high. This was followed by a slight pullback due to some profit-taking, with the price closing near 143,200 yuan per tonne. The contract ultimately closed up 2.61% at 143,200 yuan per tonne, whilst open interest fell by 9,640 lots.

In the spot market, downstream buyers purchased on a needs-based basis at lower levels; some downstream firms saw an increase in spot order demand as long-term contract volumes were reduced due to maintenance at upstream lithium salt plants. Upstream lithium salt plants remained relatively cautious regarding spot sales; those with maintenance plans prioritised long-term contract supply this month, whilst some showed a slight easing in their willingness to maintain prices. Overall, market enquiries and actual transactions remained relatively stable.