Price trend

According to the data monitoring of SunSirs, the price decline trend of industrial and battery grade lithium carbonate continued to expand this week. The average domestic mixed price of industrial grade lithium carbonate on March 9 was 347,600 RMB/ton, down 6.71% from the average price of 372,600 RMB/ton on March 5. The average domestic mixed price of battery grade lithium carbonate on March 9 was 372,000 RMB/ton, down 6.53% from the average price of 398,000 RMB/ton on March 5.

Analysis review

From the observation of market changes, lithium carbonate prices had maintained a sharp downward trend this week. In terms of supply, with the gradual warming of the temperature in Qinghai Salt Lake and other places, the domestic lithium carbonate production was stable. Most lithium salt plants mainly signed long orders. Due to the continuous decline of lithium carbonate prices, the market inquiries were relatively light in the atmosphere of buying up and not buying down.

In terms of demand, the sales of new energy vehicles in the downstream will drop sharply in 2023, so the demand for lithium batteries will also be greatly reduced, which will lead to a decline in the demand for lithium carbonate raw materials. With the continuous expansion and continuation of the decline of lithium carbonate, the market showed a wait-and-see situation. In addition, the continuous downward pressure on lithium carbonate price in the downstream made the price drop again and again.

The downstream lithium hydroxide market was weaker, and the upstream lithium carbonate continued its downward trend, weakening its support for lithium hydroxide. The production and commencement at the supply side were relatively stable, and the market supply was relatively sufficient, but the downstream follow-up was less than expected, and mainly wait-and-see in the market. The market transaction atmosphere was weak, and the quotations of lithium hydroxide enterprises were stable and declined.

The downstream ferrous lithium phosphate market remained stable, and the cost of ferrous lithium phosphate eased due to the continuous decline of lithium carbonate price. However, the short-term procurement demand in the downstream terminal market was low, and the price was stable, which was mainly wait-and-see.

Market outlook

The lithium carbonate analyst of SunSirs believed that the lithium salt market was in a depressed state as of the 9th. Under the condition of strong supply and weak demand, the market was dominated by the game of long and short. It is expected that the price of lithium carbonate will continue to decline in the short term.

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