According to the monitoring of the commodity market analysis system of SunSirs, the price of industrial and battery grade lithium carbonate maintained a downward trend recently. On July 20, the average domestic mixed price of industrial lithium carbonate was 287,600 RMB/ton, down 1.17% from the average price of 291,000 RMB/ton on July 9. The domestic mixed average price of battery grade lithium carbonate was 304,600 RMB/ton on July 20, a decrease of 1.3% compared with the average price of 308,600 RMB/ton on July 9.
Analysis review
From the observation of market changes, the price of lithium carbonate was still downward under pressure recently. In terms of supply, lithium salt plants were actively purchasing ore, and the production capacity of early production enterprises significantly increased, and the overall market operating rate had performed well. In addition, Lanke released goods to the market, which kept the market supply increasing.
In terms of demand, as of July 20th, under the condition of sufficient market supply, downstream material factories had a low acceptance of high priced lithium carbonate and a low willingness to purchase, so the market slightly was having a price but no sales. In addition, as the end of the month approaching, the power problem in Sichuan may have a certain impact on iron and lithium production, which will also have a brief decline in lithium salt demand.
The price of lithium hydroxide in the downstream was slightly lower. As the price of lithium carbonate showed a downward trend, the support for the lithium hydroxide market was weakened. The production enterprises were dominated by long-term orders. The downstream material enterprises were not enthusiastic about purchasing high priced raw materials. The wait-and-see atmosphere was strong, the market trading atmosphere was light, and the focus of the lithium hydroxide market negotiation was declining.
The price of downstream ferrous lithium phosphate ran smoothly. As of July 20th, downstream enterprises replenished goods on demand. The price of upstream lithium carbonate was still at a high level, which supported the cost of ferrous lithium phosphate to a certain extent. In the short term, ferrous lithium phosphate maintains its early trend. The manufacturer only supplies old customers, and do not accept new customers’orders.
Market outlook
Lithium carbonate analysts from SunSirs believe that, as of July 20, the supply and demand game in the lithium carbonate market was maintained, and the market supply was relatively sufficient. In contrast, the demand remained stable, so some enterprises had slightly reduced prices under inventory pressure to increase the transaction probability. It is expected that the price of lithium carbonate may be weakly consolidated in the short term.
