Price trend                               

According to the Commodity Market Analysis System of SunSirs, the domestic lithium carbonate market continued to operate weakly in mid September. On September 18th, the average price of battery grade lithium carbonate was 78,200 RMB/ton, a decrease of 9.32% from the same period last month when it was 85,800 RMB/ton. The average price of industrial grade lithium carbonate was 75,400 RMB/ton, a decrease of 9.16% from the same period last month when it was 83,000 RMB/ton.

Major factory maintenance, short-term rise in spot market

On the morning of September 11th, market news reported that the Ningde Times Yichun project would be shut down for maintenance, and the lithium mica business in Jiangxi would be suspended.

On the afternoon of September 11th, Jiuling Lithium announced that its subsidiaries Jiangxi Chunyou Lithium and Yifeng Jiuyu Lithium was completely shut down for maintenance on September 12th, with a duration of 15 days.

Major factories had reduced production, and the supply-demand margin of the lithium carbonate market had improved. However, the long-term accumulation of excess capacity was difficult to change in the short term.

Supply side inventory decreased, production slightly increased

Recently, the weekly inventory of lithium carbonate in the Chinese market had decreased, with a slight increase in production and numerous new projects being put into operation. The risk of excess had not fundamentally changed. And it is expected that the centralized cancellation of lithium carbonate warehouse receipts by the end of November will put pressure on the supply side.

Downstream demand was improving, which may provide support for prices

Since September, the demand for downstream power cells and energy storage cells had continued to improve. The demand for lithium iron phosphate batteries in the field of new energy vehicles was strong, with intensive new product released. In addition, the demand for overseas energy storage projects had increased, and the orders for lithium iron phosphate cathode materials had continued to increase, further boosting market confidence.

Market outlook

The data analyst of SunSirs believes that the lithium carbonate market was temporarily in a supply-demand game, but the overall pattern was that supply exceeded demand, and the price of lithium carbonate was still under pressure. It is expected to continue to fluctuate weakly in the short term.

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