Price trend
According to the Commodity Market Analysis System of SunSirs, the price of lithium carbonate fluctuated weakly in early December. As of December 3, the domestic price of industrial grade lithium carbonate was 78,400 RMB/ton, an increase of 2.08% from the same period last month at 76,800 RMB/ton; The domestic price of battery grade lithium carbonate was 81,000 RMB/ton, an increase of 2.02% compared to the same period last month at 79,400 RMB/ton.
Analysis review
The supply side production continued to recover. Due to a slight rebound in lithium carbonate prices during November, companies have good profits from lithium carbonate after hedging, and manufacturers had begun to release production.
The demand side was seasonally weak, with demand exceeding expectations from the end of October to November. December was the traditional off-season, but due to local subsidies for new energy vehicles and policies such as trade in, orders from car companies are expected to smooth out and there will be no cliff like decline in production scheduling.
The pace of destocking had slowed down, with spot inventory of 108,300 tons this week, including 33,900 tons of smelter inventory, 29,300 tons of downstream inventory, and 45,100 tons of other inventory. The destocking pace had slowed down, and the destocking process was mainly concentrated in traders. At the end of the year, there was a demand for capital recovery, and most traders choose to reduce inventory and sell spot goods at discounted prices starting from the end of the year.
Market outlook
SunSirs’ lithium carbonate data analyst believes that it is expected that the supply will be strong and demand weak in December, and the domestic lithium carbonate market will still mainly operate in a range of fluctuations, making it difficult to have breakthrough performance. Specific market information still needs to be monitored.
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