According to the monitoring of the commodity market analysis system of Business Society, the prices of industrial grade lithium carbonate and battery grade lithium carbonate continued to rise this week. On March 7, 2024, the average domestic mixed price of industrial grade lithium carbonate was 102400 yuan/ton, an increase of 6.22% compared to the average price of 96400 yuan/ton on March 1. On March 7th, the average domestic mixed price of battery grade lithium carbonate was 111400 yuan/ton, an increase of 5.69% compared to the average price of 105400 yuan/ton on March 1st.

By observing market changes, it can be seen that the price of lithium carbonate has continued to show an upward trend this week. In terms of supply, the delay in resuming production in Jiangxi region has been implemented due to the impact of the Yichun environmental inspection incident. In addition, Australian mining has reduced production and some domestic lithium salt enterprises are still in the early stages of maintenance and recovery. The available sources of goods for sale are mainly long-term contracts, and there are relatively few scattered orders in the market, leading to expectations of tightening supply. Therefore, the prices of individual lithium salt companies in the market continue to rise overall, and some lithium salt companies still maintain a strategy of selling individual orders at high prices.

In terms of demand, some downstream enterprises such as positive electrodes currently believe that the high price of lithium carbonate in the market is not a true guide to market demand, but rather an expectation of subsequent demand recovery. Therefore, most downstream enterprises such as positive electrodes generally have poor acceptance of high priced lithium carbonate, and only purchase a small amount of low-priced goods in the market or purchase a small amount of high priced goods based on order conditions to maintain a relatively reasonable level of raw material inventory, without a large demand for reserve inventory.

The lithium hydroxide market is showing an upward trend. With the recent rise in lithium carbonate prices and upstream spodumene concentrate prices, the cost support for lithium hydroxide has been boosted. However, market transactions are still mainly based on long-term contract orders, and the mentality of the industry is still acceptable. The price of lithium hydroxide has slightly increased.

The downstream price of lithium iron phosphate is showing an upward trend, while the upstream raw material lithium carbonate price is the main trend. The downstream market mostly replenishes according to demand, mainly supplying contract customers. The lithium battery market has a strong wait-and-see atmosphere and sufficient supply. In addition, the market negotiation atmosphere is still favorable, and the enthusiasm for shipping is high, resulting in a narrow range and a strong trend in prices.

In terms of futures, the prices of lithium carbonate futures have fluctuated this week, with significant short-term market divergence and ongoing supply side disturbances. The market is greatly affected by funds and emotions, resulting in significant fluctuations in futures prices. On March 7, 2024, the opening price of the LC2407 main contract was 115000 yuan/ton, the closing price was 113000 yuan/ton, and the highest price was 116450 yuan/ton, with a daily increase of 0.27%. The transaction volume was 365700 lots and the position was 215643 lots.

According to analysts from Shengyishe Lithium Carbonate, the current quotations from lithium salt companies are still relatively strong, but the market price is still higher than the downstream purchasing psychology, so there is still uncertainty in the subsequent market situation. The weak state of supply and demand in the lithium carbonate market is gradually recovering, leading to temporary wait-and-see behavior among businesses. It is expected that the short-term spot price of lithium carbonate will remain stable.