Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of industrial grade and battery grade lithium carbonate showed an overall downward trend in early July. On July 16th, the average domestic mixed price of industrial grade lithium carbonate was 93,912 RMB/ton, a decrease of 1.85% compared to the average price of 95,400 RMB/ton on July 1st. On July 16th, the average domestic mixed price of battery grade lithium carbonate was 97,060 RMB/ton, a decrease of 2.94% compared to the average price of 100,000 RMB/ton on July 1st.

Analysis review

On the cost side, the cost of producing lithium carbonate from external lithium concentrate was about 97,800 RMB/ton, and the cost of producing lithium carbonate from lithium mica was about 102,800 RMB/ton. The cost side continued to loosen, and lithium prices were under pressure. Some external mining and processing plants reduced production, and the supply pressure had slightly eased.

On the demand side: In July, the production schedule of large factories producing ternary positive electrodes improved, but the increase was limited. It is expected that peak season stocking will begin in August, which may stimulate an increase in power battery production.

Downstream: Lithium hydroxide prices were running weakly. As of July 16th, the production and sales operating rates of lithium hydroxide had both increased to a certain extent, and the overall performance of production and sales was average. It is expected that the lithium hydroxide market will be weak and stable in the later stage.

Market outlook

The lithium carbonate analyst from SunSirs believes that there was obvious pressure of overcapacity in the lithium carbonate market, and there was still continuous production of new capacity. The surplus situation was difficult to change, and it is expected that in the short term, lithium carbonate price will remain in a wait-and-see situation, maintaining consolidation at a low level.

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