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 September. On September 28th, the average domestic mixed price of industrial grade lithium carbonate was 161000 yuan/ton, a decrease of 23.33% compared to the average price of 210000 yuan/ton on September 1st. On September 28th, the average domestic mixed price of battery grade lithium carbonate was 175000 yuan/ton, a decrease of 21.88% compared to the average price of 224000 yuan/ton on September 1st.

By observing market changes, it can be seen that the price of lithium carbonate continued to decline in September. In terms of supply, the production output of lithium salt factories did not fluctuate significantly in early September, and there was sufficient circulation of goods in the spot market. Subsequently, there was news that a major factory in Qinghai Salt Lake was about to release goods, resulting in an increase in market supply, which put some pressure on the current spot market with sufficient goods.

In late September, due to environmental inspections, mica mining was restricted in the Jiangxi region, resulting in a narrowing of profit margins for some Jiangxi lithium salt factories and a phenomenon of production stoppage and reduction. However, some large lithium salt manufacturers have also released products at low prices, resulting in an increase in the circulation of lithium carbonate in the market. As the price of lithium salts continues to decline towards the end of the month, some manufacturers’ prices and costs have been reversed, and some companies have become increasingly pro priced.

In terms of demand, in early September, the upstream and downstream industries in the lithium carbonate market held a wait-and-see attitude towards lithium salt prices. The recovery of downstream demand was poor, and although there were frequent inquiries, both procurement and actual transactions were relatively light. Delayed delivery and negotiation of orders often occurred. In addition, in the context of low downstream purchasing willingness, there is an expectation of incremental lithium carbonate, which has led to a retreat in the procurement demand of some downstream enterprises. In an atmosphere of buying up rather than falling, more purchases are made on demand.

In late September, both supply and demand in the spot market were weak, and downstream demand expectations were relatively pessimistic, with no obvious signs of improvement in the short term. Buying demand was weak, and transactions were light. With the state of downstream bargain hunting, the focus of market transactions shifted downward. The end of the month is approaching the National Day Mid Autumn Golden Week, but based on the current downstream pre holiday stocking situation, there are many market inquiries and price pressures, and purchasing intentions are weak. There are few large-scale transactions. As some lithium salt factories and downstream negotiations fall into a stalemate, the market price decline has narrowed.

The market price of lithium hydroxide has decreased. In the first half of September, the upstream spodumene concentrate price fell, and the lithium carbonate market operated weakly, with weakened cost support. Production enterprises mainly focused on long-term orders, while downstream demand was light. Inquiries and purchases needed to be cautious, and individual transactions were limited. Under the dual drag of cost and demand, the focus of negotiations in the lithium hydroxide market has declined. In the second half of the month, cost support remains weak, downstream demand follow-up is insufficient, market trading atmosphere is light, and the lithium hydroxide market continues to operate weakly.

The downstream price of lithium iron phosphate is weak and declining. In September, the demand for lithium iron phosphate was lower than expected, and the entire industry chain has high inventory, causing prices to continue to decline. The number of enterprise orders has decreased, and the overall industry growth rate has slowed down. From the long-term trend of the demand side, the market’s demand for positive electrode materials has improved, and the demand for lithium iron phosphate will gradually recover.

In terms of futures, on September 28th, the opening price of the LC2401 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 150000 yuan/ton, with a maximum price of 152500 yuan/ton, a daily increase of 1.11%, with 197300 transactions and 60869 positions.

According to lithium carbonate analysts from Business Society, the upcoming Mid Autumn and National Day holidays have resulted in weaker purchasing willingness in downstream markets, with the market mainly relying on wait-and-see behavior. With the continuous bottoming out of lithium carbonate prices, many lithium salt factories have started to reduce and stop production, which will alleviate the supply of lithium carbonate in the future. It is expected that the price of lithium carbonate will remain weak and volatile in the short term.