Price trend

According to the Commodity Market Analysis System of SunSirs, domestic lithium carbonate operated weakly in early March. As of March 5th, the average price of battery grade lithium carbonate was 76,700 RMB/ton, a decrease of 2.66% from 78,800 RMB/ton at the beginning of the year and a decrease of 28.58% from 107,400 RMB/ton in the same period last year; The average price of industrial grade lithium carbonate was 74,500 RMB/ton, a decrease of 2.49% from 76,400 RMB/ton at the beginning of the year and a decrease of 24.29% from 98,400 RMB/ton in the same period last year.

Analysis review

The destocking cycle has ended, and the situation of oversupply was difficult to change

As of March 5th, the operating rate of lithium carbonate enterprises was about 45%, which has increased compared to before the holiday. The inventory of lithium carbonate has ended and continued to accumulate, resulting in a serious overall supply-demand imbalance.

Downstream demand was improving, but overall growth rate was slowing down

The production of ternary materials and lithium iron phosphate has increased after the holiday. Although the first quarter was a low season for energy storage demand, some battery cell factories stocked up in advance, driving up the demand for lithium carbonate and increasing the operating rate of lithium iron phosphate enterprises.

Market outlook

The situation of oversupply of lithium carbonate is difficult to change, and it is difficult for the demand side to balance the pressure on the supply side. The upward momentum is insufficient, and it is expected that lithium carbonate will fluctuate to be weaker in the short term.

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