According to the monitoring of the commodity market analysis system of the business agency, the price of industrial and battery grade Lithium carbonate continued to fall under pressure this week. On August 3, the average domestic mixed price of industrial Lithium carbonate was 267000 yuan/ton, down 3.96% from the average price of 278000 yuan/ton on July 30. The domestic mixed average price of battery grade Lithium carbonate was 285000 yuan/ton on August 3, a decrease of 4.36% compared with the average price of 298000 yuan/ton on July 30.

From the observation of market changes, the Lithium carbonate market continued to decline this week due to the low price of Lithium carbonate futures. The supply side market has maintained an increase in supply, and inventory has continued to accumulate. There have been reports of a small number of chemical plants shutting down. Some enterprises also cut prices to facilitate the transaction under the pressure of shipment, and the Spot market is still in a heavy game mood.

In terms of demand, as the spot price of Lithium carbonate continues to decline, the downstream purchasing is cautious, and there is no mass replenishment. In addition, there have been rumors of production cuts in the downstream market recently, and there are expectations of a temporary weakening of demand, leading to a higher level of pessimism in the market. In a state of relatively imbalanced supply and demand, market procurement is mainly wait-and-see, and the market supply and demand game continues.

The price of Lithium hydroxide decreased, the production at the supply side remained normal, and the spot circulation was sufficient. On the demand side, the recovery of high nickel ternary demand was not as expected, and the material factory maintained a state of destocking. Spot prices in the market continue to decline, and downstream procurement tends to be cautious.

The price of downstream Lithium iron phosphate is stable. At present, due to the continuous decline in the price of Lithium carbonate, the main raw material, Lithium iron phosphate enterprises are not active in purchasing, so they are cautious in replenishment. Although the increase of Iron(III) phosphate raw materials has led to the increase of production costs, the price is difficult to rise. The demand side of the battery cell companies, mainly based on long-term cooperation, has extended the delivery time, and individual customers have a heavy wait-and-see mood, so prices are temporarily stable.

In terms of futures, on August 3, the opening price of Lithium carbonate futures LC2401 contract of Guangzhou Futures Exchange was 226000 yuan/ton, the latest price was 229650 yuan/ton, with a daily increase of 0.28%, 19700 transactions and 10136 positions.

Lithium carbonate analysts from the business agency believe that the current supply and demand game in the Lithium carbonate market is maintained, the upstream continues to accumulate stocks, and the downstream maintains to go out of stocks. They can only wait for the arrival of procurement nodes, which may bring a turnaround to the price of Lithium carbonate. It is expected that the price of Lithium carbonate may continue to weaken in the short term.