SunSirs: The Increase in Supply Led to a Drop in Lithium Carbonate Prices

According to the commodity market analysis system of SunSirs: After a slight rebound recently, lithium carbonate has returned to a weak trend. As of June 24, the SunSirs benchmark price of domestic battery-grade lithium carbonate was 59,966 RMB/ton, down 0.39% from 60,200 RMB/ton at the beginning of the month and 42% from 103,400 RMB/ton in the same period last year; SunSirs benchmark price of domestic industrial-grade lithium carbonate was 58,233 RMB/ton, down 1.19% from 58,933 RMB/ton at the beginning of the month and 41.15% from 99,000 RMB/ton in the same period last year.

Overseas ore capacity clearance and capacity climbing

Overseas mines are dragged down by the downward trend in lithium carbonate prices, and their profit margins are narrowing. On the one hand, high-cost minerals have entered the capacity clearance stage. On the other hand, the capacity climbing of low-cost minerals and the increase in newly put into production have supported the downward shift of the cost support of imported lithium carbonate.

Domestic supply continues to increase

The production plans of most domestic manufacturers remain stable, and the resumption of production capacity continues to be released. From a regional perspective: the output in Qinghai remains stable, and the capacity utilization rate of Jiangxi mining areas has increased slightly. The overall output is expected to increase slightly.

There is a trend of reduction on the demand side

The domestic power terminal has a mid-year rush. Driven by the growth of exports to the EU and Southeast Asia, the demand for power terminals will grow steadily. In July, the power end is in the off-season, and the demand for power is expected to decrease. The energy storage cell has a clear trend of reduction in production under the background of the cancellation of the mandatory storage policy and the "531" rush to install overdraft demand.

The lithium carbonate data analyst of SunSirs believes that the supply side has a large increase and the demand side has contracted significantly. It is expected that lithium carbonate will still fluctuate weakly, and it is still necessary to pay attention to market changes.

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