Price trend

According to the data monitored by SunSirs, the price of industrial grade and battery grade lithium carbonate has been declining continuously recently. As of December 21, the average domestic mixed price of industrial lithium carbonate was 525,000 RMB/ton, a decrease of 6.08% compared with the average price of 559,000 RMB/ton on December 11. On December 21, the average domestic mixed price of battery grade lithium carbonate was 545,000 RMB/ton, down 5.71% compared with the average price of 578,000 RMB/ton on December 11.

Analysis review

According to the observation of market changes, the price of lithium carbonate has continued to decline recently, and the price of large lithium salt plants was slightly adjusted. Some of them sold spot goods, and they had a strong feeling of price supporting. They also started to sign long-term agreement orders for next year. However, traders had strong bearish sentiment, so the selling sentiment was heavy, and the transaction price kept falling.

On the demand side, the downstream Sanyuan and lithium iron plants were not willing to purchase, the market transaction price and purchase price were reduced, and the downstream and terminal markets were basically in the state of digesting inventory. In addition to the current increase in the spot volume of lithium carbonate, the price continued to weaken in the market where the supply was strong and the demand was weak.

The price of lithium hydroxide in the downstream fell. As of the 21st, the first tier manufacturers of lithium hydroxide mainly exported, the second tier manufacturers mainly supplied domestic demand, and the lithium hydroxide market was mainly traded for long contract orders. The atmosphere of the spot market was light. In addition to the recent decline in the price of lithium carbonate in the upstream, the support for lithium hydroxide was weak. Shipments of the holders were under pressure, and the number of price reduction shipments increased. The focus of lithium hydroxide market negotiations declined.

The price of lithium iron phosphate in the downstream was stable. As of the 21st, the downstream just needed to purchase, and the logistics was slow. In the short term, the early trend would be maintained. The manufacturer only supplied old customers, but the number of new customers was limited.

Market outlook

Lithium carbonate analysts from SunSirs believe that at present, the downstream and terminal markets have mainly digested the inventory, and the demand is declining. It is unlikely that the price of lithium carbonate will rise before the Spring Festival. Market sentiment and expected price will continue to weaken, and it is expected that the price of lithium carbonate will continue to fluctuate at a high level in the short term.

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