Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the overall prices of industrial grade and battery grade lithium carbonate showed a "continuous decline" trend in June. On June 31st, the average domestic mixed price of industrial grade lithium carbonate was 95,552 RMB/ton, a decrease of 7.23% compared to the average price of 103000 RMB/ton on June 1st. On June 31st, the average domestic mixed price of battery grade lithium carbonate was 10,188 RMB/ton, a decrease of 8.42% compared to the average price of 109,400 RMB/ton on June 1st.

Analysis review

On the supply side, the monthly production of lithium carbonate in June was 64,868 tons, an increase of 2,330 tons compared to the previous month and a year-on-year increase of 58%; Among them, the production of battery grade lithium carbonate reached 41,075 tons, an increase of 1,070 tons from the previous month and a year-on-year increase of 56%; The production of industrial grade lithium carbonate reached 23,793 tons, an increase of 1,260 tons from the previous month and a year-on-year increase of 61%.

The operating rates of each major production area were gradually increasing, and there was a certain short-term increase in supply. The supply side was expected to continue to stack up.

On the demand side, the monthly demand for lithium carbonate in June was 68,053 tons, a decrease of 4,738 tons from the previous month and a year-on-year increase of 7.04%. The production schedule of the battery factory in June is expected to remain basically unchanged compared to the previous month, while major factories still relied on long-term cooperative customer supply as the main rigid procurement. According to research, the overall production schedule of material factories in July slightly increased compared to June. In terms of the terminal market, according to preliminary estimates from the China Association of Automobile Manufacturers, wholesale sales of new energy passenger vehicles in China reached 970,000 units in June, a year-on-year increase of 28% and a month on month increase of 8%. The demand for new energy vehicles is about to enter the off-season, and power battery manufacturers are maintaining production reduction and inventory reduction, while maintaining essential procurement or delaying delivery of raw materials.

Future analysis

According to Lithium Carbonate analysts from SunSirs, the rapid growth in supply combined with slowing demand had led to a continuous decline in lithium carbonate prices in June, and the subsequent improvement in demand may not be until August. In mid July, warehouse receipts will undergo centralized cancellation, which will further put pressure on the spot market.

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