SunSirs: Lithium Carbonate Prices Have Reached a New Bottom

Entering November, lithium carbonate continued to decline in price. On November 7th, the average domestic mixed price of battery grade lithium carbonate in the spot market was 166800 RMB/ton, a decrease of 1.77% compared to the beginning of the month.

In the futures market, the main contract LC2401 fluctuates repeatedly at around 140000 RMB/ton, with a current quotation of 1425.5 million RMB/ton. LC2402- LC2406 are priced between 140000 RMB and 120000 RMB/ton respectively.

Among lithium mining enterprises, ore enterprises have been greatly affected, and the performance of the "lithium mining duo" has been tarnished.

Tianqi Lithium achieved a revenue of 8.576 billion RMB in the third quarter, a year-on-year decrease of 17.14%; The net profit was 1.646 billion RMB, a year-on-year decrease of 70.89%.

Ganfeng Lithium achieved a revenue of 7.537 billion RMB in the third quarter, a year-on-year decrease of 42.77%; Realized a net profit attributable to 159.6 million RMB, a year-on-year decrease of 90%.

On the contrary, salt lake enterprises with relatively low costs have strong pressure resistance.

Salt Lake Group achieved a revenue of 5.834 billion RMB in the third quarter, a year-on-year decrease of 6.47%; The net profit attributable to shareholders of the listed company was 502 million RMB, a year-on-year decrease of 82.83%.

The operating revenue of Zangge Mining in the third quarter was 1.393 billion RMB, a year-on-year decrease of 36.77%; The net profit attributable to shareholders of the listed company was 942 million RMB, a year-on-year decrease of 46.73%.

In addition, according to the data disclosed by Zangge Mining, the production cost of lithium carbonate in the third quarter was only 38900 RMB/ton, and even decreased compared to the first half of the year due to seasonal factors. The average selling price of lithium carbonate in the first three quarters was 246100 RMB, and the gross profit margin remained at a relatively high level.

Currently, downstream markets are generally bearish, with strong pressure on prices, resulting in a widening price difference between futures and spot prices. As an important reference for commodity trading and price negotiations, the decline in futures prices may further lower spot prices.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.