According to the monitoring of the commodity market analysis system of the Business Society, the prices of industrial grade and battery grade lithium carbonate continued to decline in August. On August 30th, the average domestic mixed price of industrial grade lithium carbonate was 210000 yuan/ton, a decrease of 23.36% compared to the average price of 274000 yuan/ton on August 1st. The average domestic mixed price of battery grade lithium carbonate on August 30th was 224000 yuan/ton, a decrease of 23.81% compared to the average price of 294000 yuan/ton on August 1st.

By observing market changes, it can be seen that the price of lithium carbonate remained in a downward trend in August, and the market continued to decline due to the low price of lithium carbonate futures. In terms of supply, the lithium carbonate market maintained an increase in supply in early August, and inventory continued to accumulate. Although not a few enterprises in Sichuan region have experienced production stoppages, the spot supply of lithium carbonate in the market is still relatively sufficient, which puts greater pressure on high prices in the spot market, leading to continuous price reductions.

In late August, there was little fluctuation in the production output of lithium salt factories, and there was sufficient circulation of goods in the spot market. In addition, the auction of salt lake lithium carbonate has come to an end, and the market’s supply of goods has flowed out, resulting in a large amount of spot inventory. In the current situation of oversupply in the spot market, prices fall again and again.

In terms of demand, the upstream and downstream game state of the lithium carbonate market continued in early August, and downstream purchases were cautious, with no large-scale restocking observed. The contradiction of oversupply in the market and the market atmosphere of low short-term transactions continue to disturb the mentality of some small factories and traders. The phenomenon of low prices promoting transactions in the spot market is frequent, leading to a gradual decrease in actual transaction prices.

In late August, there was a heavy pessimism in the spot market, leading to downstream procurement becoming more cautious, and the atmosphere of loose orders in the market remained weak. However, downstream procurement has not yet started on a large scale, and there has been no significant improvement on the demand side. The overall market situation of oversupply is maintained. In addition, many companies are bearish towards the future market, so the trend of purchasing underpricing remains unchanged.

On August 23rd, a 600 ton industrial grade lithium carbonate auction was held in Qinghai Salt Lake, with a starting price of RMB 180000 to 190000 per ton. The bidding will be split into 30-90 tons. The final winning prices for this auction were all between 204000 and 208000 yuan/ton (including factory tax), and there were serious differences in market views.

The lithium hydroxide market continued its downward trend, with both the lithium ore market and lithium carbonate prices weak and declining in August. Cost support weakened, and production enterprises mainly focused on long-term orders. Downstream material factories did not follow up on demand, and their enthusiasm for inquiry and procurement was not high. Market transactions were mainly on demand, and holders were actively shipping. The focus of negotiations in the lithium hydroxide market was weak. However, downstream procurement has a cautious mindset, high-end price negotiations are weak, market atmosphere is light, and the market continues to decline.

The downstream price of lithium iron phosphate is weak and declining. In August, the upstream price of lithium carbonate continued to decline, and the cost support for lithium iron phosphate is weak. In the short term, lithium carbonate will maintain its previous trend. However, downstream markets often restock as needed, with manufacturers only supplying old customers and new customers not taking orders.

In terms of futures, on August 30th, the opening price of the LC2401 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 188100 yuan/ton, with the latest price of 186100 yuan/ton, a daily increase of 0.49%, with 59300 transactions and 29534 positions.

According to lithium carbonate analysts from Business Society, there is currently sufficient supply in the lithium carbonate market, and downstream positive electrode material factories are mostly waiting for September to schedule production. For lithium carbonate prices, they are mainly wait-and-see. However, there has been no large-scale centralized replenishment in the industry, and all links in the industry chain are relatively cautious. It is expected that the price of lithium carbonate will remain weak in the short term.