SunSirs: Lithium Carbonate Prices Rebounded Strongly and Operate Strongly in the Short Term

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the price of industrial grade and battery grade lithium carbonate showed a strong upward trend this week. On May 18th, the average domestic mixed price of industrial grade lithium carbonate was 277,000 RMB/ton, an increase of 27.65% compared to the average price of 217,000 RMB/ton on May 14th. On May 18th, the average domestic mixed price of battery grade lithium carbonate was 300,000 RMB/ton, an increase of 25.52% compared to the average price of 239,000 RMB/ton on May 14th.

Analysis review

By observing market changes, it can be seen that the price of lithium carbonate continued to rise strongly this week. In terms of supply, the pricing power of upstream raw material lithium mica was biased towards mines, and the hoarding sentiment among traders remained fierce. The price of pyroxene had also increased significantly recently, with some lithium salt companies reducing their production in May due to a lack of ore. Due to the stability of overseas supply, the production plans of the head lithium salt manufactures had not undergone significant changes in the short term.

In terms of demand, downstream positive electrode material factories still mainly focused on replenishing their stocks on demand, but the number of days in reserve had increased compared to the previous period. But with the recent events such as salt lake auctions and mica auctions, there were expectations of a rise in the lithium carbonate market. In addition, the strong upward sentiment among traders and the reluctance of lithium salt factories to sell had led to a slight panic in the market.

The price of downstream lithium hydroxide continued to rise, while the price of upstream lithium carbonate continued to rise, driving the atmosphere of the lithium hydroxide market. The mentality of the business owners to stand up for prices increased, and the prices of enterprises had increased. Downstream demand slightly increased, and the spot market transactions were mainly in demand. The focus of negotiations in the lithium hydroxide market had increased.

Downstream prices of ferrous lithium phosphate showed an increase, while the price of raw material lithium carbonate increased. There was some support from the cost side of ferrous lithium phosphate, and downstream demand was acceptable. Downstream procurement was active, and the market trading atmosphere was good. As of the 18th, upstream lithium carbonate was operating to be stronger, while ferrous lithium phosphate was passively rising.

Market outlook

Lithium carbonate analysts from SunSirs believe that the current sharp rise in the price of lithium carbonate shows an irrational state and is heavily guided by market sentiment. Although the spot inquiry has increased, it is still dominated by rigid demand. It is expected that the price of lithium carbonate may remain strong in the short term.

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