SunSirs: At the End of the Year, Lithium Carbonate Continued to Fluctuate and Weaken

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of lithium carbonate continued to fluctuate weakly at the end of December. As of December 19th, the domestic price of industrial grade lithium carbonate was 77,400 RMB/ton, a decrease of 1% from the same period last month at 78,200 RMB/ton; The domestic price of battery grade lithium carbonate was 79,800 RMB/ton, a decrease of 1.2% from 80,800 RMB/ton in the same period last month.

Analysis review

Destocking suspended and fundamental margins weakened

Since September, lithium carbonate has experienced continuous destocking due to stronger demand and reduced production in salt lakes. By the end of the year, the significant increase in pyroxene, mica, and recycling offset the reduction in Saltlakes. At the same time, factories were operating at full capacity, and lithium carbonate was restocked, leading to a weakening of the fundamental margin.

Downstream demand maintained steady growth

The expected production of lithium iron phosphate remained at a high level, and considering the early demand for some orders before the Spring Festival, the material factory's production capacity has increased. The policy effect of stabilizing national economic growth in the field of new energy vehicle power batteries continued to emerge, coupled with the continuation of local car purchase subsidies, promotional activities, and other measures, automobile consumption is expected to continue to grow in the fourth quarter.

Market outlook

SunSirs’ lithium carbonate data analyst believes that the total inventory of lithium carbonate was high and began to accumulate again, but the consumer situation was improving. It is expected that lithium carbonate will fluctuate in the short term, and specific market changes still need to be monitored.

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