Lithium carbonate "broke" the 100000 yuan mark to continue upstream! How much longer can it go up under strong bullish expectations?

SMM Aug. 20: yesterday, the lithium battery plate rose rapidly near noon, while the lithium mining index also rose 7% at one point. In terms of individual stocks, Tianhua Ultra Clean and Tibet Mining set new highs for the year in intraday trading. Today, although the lithium battery sector has a pullback compared with yesterday, Tianhua Chaojing is still strong, rising as much as 10.54% to 86.14 yuan / ton in intraday trading, refreshing its share price at an all-time high.

In addition, the company announced yesterday night that the company's pilot production of 25000 tons of battery-grade lithium hydroxide and battery-grade lithium carbonate project also ushered in a wave of soaring stock prices at the moment of the lithium fire. After the opening of trading today, the stock price was pulled up and sealed the trading limit in a straight line. Although there was some turbulence during the period, it still ended up with the trading limit at the end of the day.

According to the spot quotation of SMM, as of August 20, the price of domestic battery-grade lithium carbonate was 9900000103000 yuan / ton, with an average price of 101000 yuan / ton.

This also means that the spot average price of domestic battery-grade lithium carbonate has successfully "broken" the 100000 yuan / ton mark to continue to rise. Under the current strong bullish expectations in the market, the rise in the price of lithium carbonate has gradually accelerated.

"Click to view the spot market of SMM metal.

According to SMM, the average spot price of battery-grade lithium carbonate has risen by 4500 yuan per ton, or 4.66 per cent, in just one week from Aug. 16 to Aug. 20.

For lithium carbonate, according to SMM's recent research, there are few quotations for lithium carbonate manufacturers on the market, and some Jiangxi manufacturers' lithium carbonate quotations have risen to about 10.5 ~ 110000 yuan / ton. The overall procurement volume in the middle and lower reaches of the month is less, enterprises are mainly wait-and-see, and the purchasing season will be concentrated at the end of August. While the current lithium carbonate fundamentals still maintain a tight balance, in the case of manufacturers hesitant to sell, the tight supply pattern appears.

It is worth mentioning that in July, domestic lithium carbonate production fell 10% month-on-month in July because of power cuts in several provinces, including Qinghai, Sichuan and Jiangxi, which superimposed restrictions on raw materials. Salt Lake will enter its annual production peak in August, and lithium carbonate production is expected to reach 19820 tons in August, up 6 per cent from the previous month, considering that the shortage of raw materials in some enterprises has not yet been solved.

As for the future price, under the influence of bullish expectations, the market sentiment is significantly increased, and SMM expects lithium carbonate prices to rebound significantly in August. "View details

This also coincides with the view of Dongxing Securities, which previously said that with the advent of the peak season, the domestic new energy vehicle industry chain is booming, the production capacity of battery and cathode materials manufacturers is about to be released, and there is a strong willingness to purchase. In addition, the inventory of lithium materials is generally tight at present, under this background, the market structure that the supply of lithium salt falls short of demand is still continuing, and the price of lithium salt will continue to be pushed up.

And considering the marginal decline of lithium carbonate production in Qinghai after the third quarter, the center of gravity of lithium price is expected to continue to rise in the fourth quarter.