According to the Commodity Market Analysis System of Shengyi Society, the lithium carbonate market operated weakly and steadily in early November. As of November 6th, the average price of battery grade lithium carbonate was 79200 yuan/ton, an increase of 1.8% from the same period last month when it was 77800 yuan/ton. The average price of industrial grade lithium carbonate is 76800 yuan/ton, an increase of 2.13% from 75200 yuan/ton in the same period last month.

Destocking of lithium carbonate

Lithium carbonate has shown a trend of destocking for 9 consecutive weeks. As of October 27, 2024, the total inventory of lithium carbonate was 116500 tons, a decrease of 1.8% compared to the previous period. Among them, the inventory of smelters decreased significantly, with a month on month decrease of 9.1% to 46000 tons. September and October are the traditional peak seasons for lithium carbonate, with a significant increase in demand and an increase in sales growth of new energy vehicles, driving the destocking of lithium carbonate. With the end of the peak season, the growth rate of the new energy vehicle market may slow down, and the demand for lithium carbonate will also decline. This will make it difficult to sustain the trend of destocking.

Lithium carbonate production capacity release

From the supply side, as the price of lithium carbonate reaches a relatively balanced position and maintains a narrow range of fluctuations, the production side is expected to recover. In the future, there will still be lithium resources put into production and climbing, and the supply side is likely to continue to maintain a growth trend,

Capacity unknown

The lithium carbonate data analyst from Shengyi Society believes that although the supply and demand relationship of lithium carbonate has improved in the short term, it is still not optimistic in the medium to long term. In the medium to long term, with the continuous increase of the supply side and the relative stability of the demand side, the lithium carbonate market will face pressure from oversupply.