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 this week. On August 10th, the average domestic mixed price of industrial grade lithium carbonate was 250000 yuan/ton, a decrease of 5.66% compared to the average price of 265000 yuan/ton on August 6th. The average domestic mixed price of battery grade lithium carbonate on August 10th was 269600 yuan/ton, a decrease of 4.73% compared to the average price of 283000 yuan/ton on August 6th.

By observing market changes, it can be seen that lithium carbonate prices are still showing a significant downward trend this week, and lithium carbonate futures prices are also continuously declining. On the supply side, although there have been many enterprises in Sichuan region experiencing production stoppages recently, the spot supply of lithium carbonate in the market is still relatively sufficient, which has put great pressure on high prices in the spot market, leading to continuous price reductions.

In terms of demand, due to the weak downstream demand, the market’s buying sentiment is cautious. 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.

The price of lithium hydroxide has shown a downward trend, and the current lithium ore market is operating in a weak state. The price of lithium carbonate has fallen, and cost support has weakened, resulting in insufficient market mentality. However, production enterprises mainly focus on long-term orders, while downstream material factories still show insufficient demand follow-up. Procurement is mainly based on demand, with average enthusiasm and a wait-and-see mentality.

Downstream lithium iron phosphate prices are showing a downward trend, while upstream raw materials are showing a downward trend. The cost support for lithium iron phosphate is weak, while downstream demand is average, with replenishment on demand and main supply to contract customers. The number of new orders is limited, and the market trading atmosphere is acceptable. The inventory level is normal, and the operating rate is stable.

In terms of futures, on August 10th, the opening price of the LC2401 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 217450 yuan/ton, with the latest price of 210500 yuan/ton, a daily decrease of 2.91%, and a total of 32400 transactions and 17113 positions.

Lithium carbonate analysts from Business Society believe that the current lithium carbonate market is generally bearish towards the future market, so actual purchasing is more cautious. Spot prices continue to decline under pressure under the current situation of oversupply, and it is expected that lithium carbonate prices may continue to decline under pressure in the short term.