[SMM Analysis] Spot Lithium Carbonate Prices Drifted Lower, Downstream Adopted Cautious Procurement and Stockpiling

SMM's spot battery-grade lithium carbonate price edged down slightly from the previous trading day. The lithium carbonate 2701 contract opened at 153,800 yuan/mt today, quickly shot up after the open to 154,500 yuan/mt to hit a session high, then encountered bearish selling pressure and pulled back in volatile trade; during the morning session, it fluctuated weakly in the range of 151,500–153,000 yuan/mt, with the center gradually shifting lower; near midday, it quickly dropped to 150,100 yuan/mt to hit a session low; in the afternoon, it rebounded in choppy trade but failed to effectively break above the average price line, in late trading, it consolidated in the 152,000–152,200 yuan/mt range, before closing down slightly by 0.12% at 152,000 yuan/mt. Open interest increased by 4,874 lots.

This week, China's lithium carbonate supply recovered somewhat, mainly because some lithium chemical plants at salt lake operations completed maintenance and gradually resumed production; other raw material sources maintained normal production. From the perspective of market transactions and inventory changes, upstream lithium chemical plants not undergoing maintenance, driven by the drifting higher prices, gradually strengthened their willingness to sell spot orders; while enterprises in the maintenance period continued to mainly supply under long-term contracts, allowing inventory to be continuously digested. Downstream material plants continued the strategy of just-in-time procurement at lows. Some producers had started stockpiling for September, but some enterprises were also concerned about the price trend next month, so their stockpiling behavior was relatively cautious. On the trader side, with upstream spot shipments and downstream just-in-time restocking progressing simultaneously, overall inventory showed a destocking trend.