Price trend

According to the commodity market analysis system of SunSirs, the price of lithium carbonate has recently surged and then fallen. As of August 4, the SunSirs’ benchmark price of domestic battery-grade lithium carbonate was 70,833 RMB/ton, down 2.75% from the recent high of 72,833 RMB/ton (July 30), and down 22.16% from 91,000 RMB/ton in the same period last year; the SunSirs’ benchmark price of domestic industrial-grade lithium carbonate was 69,666 RMB/ton, down 3.06% from the recent high of 71,866 RMB/ton (July 30), and down 21.19% from 88,400 RMB/ton in the same period last year.

Against the backdrop of the "anti-involution" campaign, expectations of production cuts and suspensions at the mining sector were driving up prices

This anti-involution campaign has led to market expectations of a supply contraction. Jiangte Electric's subsidiary halted production for 26 days for maintenance starting July 25th, and China Mining Resources' Jiangxi lithium salt production line halted operations for six months for technical upgrades. Coupled with mining permit issues at companies like Zangge Mining and CATL, the short-term supply gap has been exacerbated. This expectation drove lithium carbonate prices significantly higher in July, from around 60,000 RMB/ton to 70,000 RMB/ton.

After the price increased, actual market transactions were limited

After the price increased, spot orders in the market decreased. With downstream companies showing limited willingness to accept goods at high prices, they were hesitant about the future price trend of lithium carbonate and generally adopted a wait-and-see approach.

Sentiment expectations had eased, but fundamentals remained dominated by oversupply

Fundamentally, while lithium carbonate supply decreased and the entire supply chain was experiencing destocking, overall supply still exceeded demand, with limited demand growth.

Future outlook:

SunSirs’ lithium carbonate data analysts believe that: although there is a trend of strengthening supervision at the mining end, lithium carbonate is still in a state of supply and demand mismatch overall, and prices are still under downward pressure. It is expected that the price of lithium carbonate will fluctuate weakly in the short term, and specific changes in market supply and demand still need to be paid attention to.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.