According to the data monitored by SunSirs, the prices of industrial and battery grade lithium carbonate kept a downward trend this week. As of December 8, the average domestic mixed price of industrial lithium carbonate was 559,000 RMB/ton, a decrease of 2.1% compared with the average price of 571,000 RMB/ton on December 4. On December 8, the average domestic mixed price of battery grade lithium carbonate was 578,000 RMB/ton, down 1.53% compared with the average price of 587,000 RMB/ton on December 4.
Analysis review
From the observation of market changes, the lithium carbonate price still showed a downward trend this week, and the downward trend of the market continued. In terms of supply, lithium salt plants on the market were still mainly supplying long-term agreement customers, with a small number of spot transactions. The news that Yongxing Materials temporarily stopped production due to its cooperation with the local environmental protection investigation had attracted the attention of insiders. It is understood that the main investigated areas were Shanggao, Gao'an, Yifeng, etc. Among them, Yongxing New Energy, Tiancheng Lithium and Linneng Lithium have announced the temporary shutdown of lithium carbonate smelting enterprises, which will have a certain impact on the overall production of lithium carbonate in December. It may provide some support for the price decline.
In terms of demand, the purchase intention price of downstream Sanyuan and Iron Lithium Plant has been lowered, and the purchase intensity has been reduced. Downstream markets tend to be cautious about raw materials and inventory preparation, market demand sentiment and expected price are weak, and the downward trend of lithium carbonate price is clear.
The price of lithium hydroxide in the downstream is stable, and the spot transactions in the market are just in demand, mainly game and wait and see. However, due to the gradual saturation of foreign demand, it is not enough to support the continuous rise of lithium hydroxide overseas prices in the short term, and the domestic lithium hydroxide prices operate stably in the short term.
The price of ferrous lithium phosphate in the downstream is stable. The current price of lithium salt has fallen back, driving the cost of some ferrous lithium phosphate enterprises down. The cost pressure has eased. The industry tends to be cautious about the future raw materials and inventory preparation, and the price is mainly stabilized temporarily.
Market outlook
The lithium carbonate analysts of SunSirs believe that the demand for downstream lithium carbonate procurement continues to be weak. In addition to the gradual liberalization of epidemic prevention and control, the transportation of goods has been eased, and most of the market procurement is on demand. However, the impact of environmental emergencies in Jiangxi may support the price decline. It is expected that the price of lithium carbonate will show a stable trend with declines in the short term.
