[SMM Analysis] Temporarily Stable! Lithium Carbonate Spot Market Transactions Show Increased Activity

This week, lithium carbonate spot prices remained stable, with fluctuations not exceeding 100 yuan/mt. Since late November, lithium carbonate spot prices have gradually pulled back, stabilizing this week.

Based on current market transactions, upstream lithium chemical smelters, having previously sold significant volumes to traders, are now maintaining relatively low inventory levels, facing relatively small pressure to sell. Additionally, as it is the period for negotiating long-term contracts for the coming year, the sentiment to stand firm on quotes remains relatively strong. Downstream material plants have recently shown stronger purchasing sentiment, with some actively transacting in preparation for stockpiling before January 2025. However, most transactions have been conducted with traders. Overall, the transaction price center for lithium carbonate remained stable this week.

Looking at the subsequent supply and demand situation for lithium carbonate, some upstream lithium chemical smelters are planning Chinese New Year maintenance, which will reduce supply levels. Meanwhile, downstream material plants are expected to reduce future orders. Under the scenario of reduced supply and demand, combined with the current circulating inventory levels of lithium carbonate in the market, lithium carbonate spot prices are expected to have slight downside room, accompanied by sideways movement.