Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of industrial grade and battery grade lithium carbonate continued to decline this week. On August 10th, the average domestic mixed price of industrial grade lithium carbonate was 250,000 RMB/ton, a decrease of 5.66% compared to the average price of 265,000 RMB/ton on August 6th. The average domestic mixed price of battery grade lithium carbonate on August 10th was 269,600 RMB/ton, a decrease of 4.73% compared to the average price of 283,000 RMB/ton on August 6th.

Analysis review

By observing market changes, it can be seen that lithium carbonate prices were still showing a significant downward trend this week, and lithium carbonate futures prices were also continuously declining. On the supply side, although there had been many enterprises in Sichuan region experiencing production stoppages recently, the spot supply of lithium carbonate in the market was still relatively sufficient, which had put great pressure on high prices in the spot market, leading to continuous price reductions.

In terms of demand, due to the weak downstream demand, the market's buying sentiment was cautious. The contradiction of oversupply in the market and the market atmosphere of low short-term transactions continued to disturb the mentality of some small factories and traders. The phenomenon of low prices promoting transactions in the spot market was frequent, leading to a gradual decrease in actual transaction prices.

The price of lithium hydroxide had shown a downward trend, and the lithium ore market was operating in a weak state. The price of lithium carbonate had fallen, and cost support had weakened, resulting in insufficient market mentality. However, production enterprises mainly focused on long-term orders, while downstream material factories still showed insufficient demand follow-up. Procurement was mainly based on demand, with average enthusiasm and a wait-and-see mentality.

Downstream ferrous lithium phosphate prices were showing a downward trend, and upstream raw materials were showing a downward trend. The cost support for ferrous lithium phosphate was weak, while downstream demand was average, replenishment was on demand and mainly supplied to contract customers. The number of new orders was limited, and the market trading atmosphere was acceptable. The inventory level was normal, and the operating rate was stable.

In terms of futures, on August 10th, the opening price of the LC2401 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 217,450 RMB/ton, with the latest price of 210,500 RMB/ton, a daily decrease of 2.91%, and a total of 32,400 transactions and 17,113 positions.

Market outlook

Lithium carbonate analysts from SunSirs believe that as of August 10th, the lithium carbonate market was generally bearish towards the future market, so actual purchases were more cautious. Spot prices continued to decline under the pressure of the situation of oversupply, and it is expected that lithium carbonate prices may continue to decline under pressure in the short term.

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