According to data monitoring by SunSirs, the prices of industrial and battery grade lithium carbonate continued to fall this week, with a steady decline. The average domestic mixed price of industrial grade lithium carbonate on March 23 was 254,600 RMB/ton, a decrease of 15.3% compared to the average price of 300,600 RMB/ton on March 19. The average domestic mixed price of battery grade lithium carbonate on March 23 was 292,000 RMB/ton, a decrease of 13.35% compared to the average price of 337,000 RMB/ton on March 19.
From the perspective of observing market changes, the price reduction of lithium carbonate increased again this week. In terms of supply, with the warming of the seasonal climate, the lithium carbonate production of the lithium salt factory had steadily increased, keeping the inventory at a high level. However, with the end of the first quarter, the pressure on some lithium salt factories to ship had increased, leading to low price selling in the market, accelerating the decline in spot prices.
In terms of demand, downstream market demand remained weak, and the market supply and demand relationship was difficult to support spot prices. In addition to the sharp decline in the price of lithium carbonate, the actual transaction was not optimistic, so some salt factories were still in a strong price supportive sentiment. The overall recovery of the terminal market was still less than expected, and overall downstream demand remained relatively weak at a low level.
The downstream lithium hydroxide market had shown a downward trend. Due to the continuous decline in the price of lithium carbonate, the cost support had weakened. Under the mentality of downstream enterprises buying up and not buying down, the market purchasing atmosphere was depressed, with a strong cautious wait-and-see mentality. As of the 23rd, the actual transaction of the market was poor, and the market price of lithium hydroxide fell.
The downstream ferrous lithium phosphate market had shown a downward trend, as the price of lithium carbonate continued to decline recently, and the inflection point had not yet emerged; The price of iron phosphate decreased slightly, driving the cost of ferrous lithium phosphate to continue to decline as a whole. However, there were fewer new orders in the ferrous lithium phosphate market, resulting in significant shipping pressure, and due to the weakness of the terminal market, the market recovery expectation was prolonged, with no significant short-term increase.
According to lithium carbonate analysts from SunSirs, as of the 23rd, the recovery cycle of the lithium carbonate market continued to lag, and the market remained in a state of oversupply. As prices continued to decline, there was little excess procurement except for purchases that were just in needed. In order to increase shipments, lithium salt factories and traders had continuously lowered their quotations, and it is expected that the price of lithium carbonate will continue to decline in the short term.
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