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. The average domestic mixed price of industrial grade lithium carbonate on September 7th was 202,600 RMB/ton, a decrease of 3.52% compared to the average price of 210,000 RMB/ton on September 3rd. The average domestic mixed price of battery grade lithium carbonate on September 7th was 216,800 RMB/ton, a decrease of 3.21% compared to the average price of 224,000 RMB/ton on September 3rd.

Analysis review

By observing market changes, it can be seen that the price of lithium carbonate was still in a downward trend this week. In terms of supply, there was little fluctuation in the production output of lithium salt factories, and there was sufficient circulation of goods in the spot market. The situation of oversupply in the spot market was maintained. As the node has entered a new round of long-term negotiation cycle, with high upstream inventory and market supply and demand imbalance, most downstream manufacturers had low purchasing intentions, leading to a downward shift in lithium carbonate prices.

In terms of demand, as of September 7th, the upstream and downstream of the industry had mostly held a wait-and-see attitude towards lithium salt prices. The recovery of downstream demand was poor. Although there were frequent inquiries, both procurement and actual transactions were relatively light, and delays in picking up and negotiating orders often occurred. In addition, the continuous decline in lithium carbonate futures prices had led to a continuous decline in spot prices.

The lithium hydroxide market declined. Recently, spodumene concentrate prices slightly decline and lithium carbonate prices decreased, cost support had weakened. Production enterprises mainly relied on long-term orders, downstream merchants purchase just in needed, demand was weak and the market transaction atmosphere was light.

Downstream ferrous lithium phosphate prices operated steadily, while upstream raw material cost support was weak. Market demand was poor, and downstream restocking was on demand. The willingness to stock up was average, and the overall purchasing atmosphere was cold. In the short term, the ferrous lithium phosphate market will operate steadily and tend to be weaker.

In terms of futures, on September 7th, the opening price of the LC2401 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 190,000 RMB/ton, with the latest price of 184,700 RMB/ton, a daily decrease of 3.35%. The transaction volume was 61,600, and the position was 32,985.

Market outlook

Lithium carbonate analysts from SunSirs believe that as of September 7th, there had been no significant change in the market supply and demand pattern, and most downstream manufacturers had low purchasing intentions. It is expected that lithium carbonate prices will continue to fluctuate at low levels in the short term.

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