According to the monitoring of the commodity market analysis system of Business Society, the price decline of industrial grade and battery grade lithium carbonate did not decrease in December. On December 28th, the average domestic mixed price of industrial grade lithium carbonate was 94000 yuan/ton, a decrease of 23.82% compared to the average price of 123400 yuan/ton on December 1st. On December 28th, the average domestic mixed price of battery grade lithium carbonate was 103000 yuan/ton, a decrease of 23.13% compared to the average price of 134000 yuan/ton on December 1st.

By observing market changes, it can be seen that the price of lithium carbonate remained in a continuous downward trend in early December, and lithium carbonate futures prices continued to decline for several consecutive days until the 13th when there was a rebound. In terms of supply, with the release of goods by large salt lake factories, the market has a relatively sufficient supply of spot goods. In addition, Zhiyi’s export of lithium carbonate to domestic markets in October has recently arrived in Hong Kong, bringing about an increase in market supply in the short term. Most lithium salt factories in the market still rely on long-term cooperative shipments, and trading enterprises continue to be in a strategy of selling individual orders at low prices.

In terms of demand, downstream positive electrode material companies are still in a low mood for purchasing goods, only replenishing inventory sporadically when prices are low. Due to the continuous downward trend in prices, downstream positive electrode material companies are also relatively cautious in their willingness to purchase loose orders. However, battery cell companies are gradually cutting orders and reducing the quantity of positive electrode materials, resulting in a significant reduction in the overall purchasing volume of the positive electrode industry. There are few zero order transactions, and the pace of long-term cooperative delivery is also gradually slowing down. This has led to significant pressure on some salt companies to ship, and poor market expectations for future demand, resulting in a downward trend in the overall market quotation and transaction focus.

In late December, the decline in lithium carbonate prices slowed down slightly. In terms of supply, the domestic lithium carbonate market is still dominated by long-term transactions. However, towards the end of the year, some lithium salt companies still have shipping ideas due to inventory pressure, and prices are still being lowered. Some lithium salt companies have a strong attitude of price support. The supply of lithium carbonate is still sufficient, and major lithium salt enterprises maintain stable production. Customs data shows that about 17000 tons of lithium carbonate were imported in November, and the domestic supply of lithium carbonate is still high in the short term.

In terms of demand, in late December, there was no increase in orders from positive electrode material companies, and the mentality of reducing raw material inventory before the year is still present. The general strategy of long order procurement is maintained, and their target price for bulk order procurement is relatively low. Under the current price situation, there is little willingness to purchase bulk orders. The reduction of orders for positive electrode materials at the battery cell end needs to be gradually implemented, and it is highly likely that the production of ternary and iron lithium will continue to decline in January. The production of electrolyte is gradually decreasing, so the demand for downstream and terminal products has become weak, which has become the norm.

The lithium hydroxide market continued to decline, with a weak trend in the upstream spodumene concentrate market during the month. The price of lithium carbonate weakened, and the cost side continued to decline. The downstream demand for high nickel materials on the demand side was insufficient, and the market shipments were average. Merchants carefully followed up on low prices when receiving goods. The lithium hydroxide market transactions were mainly long-term cooperative orders, and the atmosphere in the spot market was light. Holders stimulated orders at low prices, and the focus of lithium hydroxide negotiations weakened.

The downstream price of lithium iron phosphate continues to decline, and on the cost side, the prices of main raw materials lithium salts and iron phosphate continue to decline, leading to a decrease in the production cost of iron lithium materials. On the supply side, iron and lithium production enterprises produce on demand, resulting in serious production cuts and shutdowns; Some iron lithium enterprises still have high inventory and prioritize destocking, but the pace of destocking is relatively slow. The demand for demand side, power side, and energy storage side has decreased, and the finished battery cells are still being taken out of stock, resulting in a significant reduction in the purchase of lithium iron phosphate.

In terms of futures, the price of lithium carbonate futures in December can be described as a sharp rise and fall. Lithium carbonate futures have fallen on 17 out of the past 18 trading days, and hit the limit on November 22, November 27, and December 5, respectively. Futures prices have repeatedly hit new lows on the market. On December 7th and 13th, the price of lithium carbonate futures hit the limit up again. On December 28th, the opening price of the LC2407 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 105600 yuan/ton, the highest price was 107350 yuan/ton, and the closing price was 106550 yuan/ton, with a daily increase of 0.42%. The trading volume was 153800 lots and the position was 152061 lots.

According to lithium carbonate analysts from Business Society, the current spot market for lithium carbonate is still in a state of oversupply. However, after experiencing a significant decline in the early stages, some manufacturers have become increasingly bullish. As the end of the month approaches, the decline in lithium salt prices has slowed down. In addition, the futures market has rebounded, and downstream positive electrode materials have a strong wait-and-see attitude. It is expected that lithium carbonate prices will remain weak in the short term.