LiCarbonate Daily - March 27th

Spot Market Update:

SMM reported that on March 27th, the battery-grade lithium carbonate spot market saw a slight decrease in prices. The average spot price ranged from 107,500 to 112,000 yuan/ton, with an average price of 109,750 yuan/ton, marking a decrease of 750 yuan/ton compared to the previous working day. Despite some fluctuations, lithium salt companies continued their relatively firm pricing strategy for spot offers. Downstream enterprises, particularly cathode manufacturers, took advantage of the lower prices following the recent decline in lithium carbonate prices to make opportunistic purchases. This resulted in an improvement in market transaction conditions compared to the previous period. However, most downstream enterprises remained cautious and refrained from making large purchases for inventory replenishment, opting instead to adopt a wait-and-see approach amid the backdrop of recent price declines.

Future Contracts Performance:

On the same day, the main contract for lithium carbonate 2407 experienced a minor increase of 0.51%. The main contract opened at 109,350 yuan/ton and closed at 108,400 yuan/ton, with a trading volume of 284,502 lots and an open interest of 201,977 lots, reflecting an increase of 1,180 lots from the previous trading day. Despite an initial sharp decline shortly after opening, the price of lithium carbonate rebounded from its intraday low of 105,800 yuan/ton and maintained an overall upward trend until the close, ultimately closing up by 0.51%.

The combined analysis of spot market dynamics and future contract performance indicates a complex landscape for lithium carbonate prices. While spot prices experienced a decline, future contracts showed resilience with a slight increase. This suggests nuanced market dynamics influenced by factors such as supply-demand balance, production capacity, and market sentiment. As lithium carbonate remains a critical component in the battery industry, closely monitoring these trends becomes essential for industry participants to make informed decisions.

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