LiCarbonate Daily - April 1st

Spot Market Overview:

In the spot market, the battery-grade lithium carbonate prices demonstrated stability, with quotes ranging between 107,500 and 112,000 yuan/ton. The average price remained steady at 109,750 yuan/ton, showing no change from the previous working day. This steadiness indicates a balanced supply-demand dynamic in the immediate term, even as the broader market eyes future developments.

Futures Market Movement:

The futures market witnessed more pronounced activity with the main contract of lithium carbonate (2407) experiencing a significant upswing. The contract opened at 107,100 yuan/ton and made a notable ascent to close at 112,600 yuan/ton, marking a 4.36% increase. The trading volume reached 273,984 lots, with open interest increasing to 200,099 lots, an upturn of 3,286 lots from the prior session. This bullish trend in futures contrasts with the stability seen in the spot market, pointing towards speculative optimism or anticipations of tighter supply in the future.

Market Indices and Price Stability:

The SMM battery-grade lithium carbonate index slightly declined by 10 yuan/ton from the previous day to 108,807 yuan/ton. Despite this marginal decrease, the broader market, encompassing both battery-grade and industrial-grade lithium carbonate, held its ground. Average prices for these categories were reported at 109,700 yuan/ton and 104,700 yuan/ton, respectively, remaining unchanged and signifying market stability.

Concluding Analysis:

The day's market activities in both the spot and futures segments reflect the complex interplay of immediate supply-demand dynamics and future market expectations. While the spot market maintains stability, underscored by steady demand and consistent pricing, the futures market's bullish trend suggests anticipations of a tightening supply or increasing demand in the coming periods. The release of goods by a major salt lake producer at higher market prices also hints at underlying pressures that could influence pricing strategies and market sentiment moving forward. As these dynamics unfold, stakeholders in the lithium carbonate market will need to stay alert to both current conditions and future signals to navigate the market effectively.

If you have any questions regarding the recent movement of lithium carbonate market (e.g. what caused it and how this can affect your business), or would like to know more comprehensive pricing info on Lithium Carbonate. Please feel free to reach out to me:

Robin He

SMM Li-ion Battery Materials Department

E: robinhe@smm.cn | T: +86-21-51595884