According to the monitoring of the commodity market analysis system of Business Society, the prices of industrial grade lithium carbonate and battery grade lithium carbonate showed a slight decrease this week. On May 22, the average domestic mixed price of industrial grade lithium carbonate was 105400 yuan/ton, a decrease of 1.31% compared to the average price of 106800 yuan/ton on May 18. On May 22, the average domestic mixed price of battery grade lithium carbonate was 111000 yuan/ton, a decrease of 1.77% compared to the average price of 113000 yuan/ton on May 18.

By observing market changes, it can be seen that the spot market for lithium carbonate has continued to operate weakly this week. In terms of upstream raw materials, several domestic salt lake lithium extraction projects have resumed production and production, with an increase in production. Construction in Jiangxi and Qinghai regions is also on the rise. In addition, there is sufficient supply of imported African minerals from abroad, and some traders import African minerals and seek OEM production. Therefore, there is continuous news of increased production of lithium raw materials both domestically and internationally, and the market surplus pattern is beginning to emerge. The overall inventory in the market is still growing.

In terms of supply, large factories in Jiangxi are resuming production, and Qinghai Salt Lake has entered a peak production period with the warming climate. In addition, with an increase in imported goods and the recent arrival at ports, the market supply pressure continues. In addition, some manufacturers have a strong willingness to lower prices, leading to a continued downward shift in the focus of spot prices.

In terms of demand, the current market is at the negotiation point of the June long-term agreement, and most downstream enterprises are cautious in observing the current fluctuation of lithium carbonate prices. Although the market has good enthusiasm for inquiry, the actual outcome is not ideal. Recently, downstream production of ternary materials has decreased month on month, and demand for iron and lithium has remained stable. Some large factories have reduced production, resulting in a weakening of downstream demand.

The market situation of lithium hydroxide has declined. Recently, the price of spodumene concentrate has been narrow and weak, and the upstream lithium carbonate price has declined. The cost support is weak, and the supply side is mainly stable. The downstream high nickel ternary demand has limited follow-up, and the demand side has decreased compared to the previous period. The market inquiry atmosphere is still good, but there is a clear wait-and-see attitude towards high priced raw materials. Be cautious when entering the market, and the actual transaction volume in the market is still weak. The focus of negotiations in the lithium hydroxide market has declined.

The downstream price of lithium iron phosphate is weak and downward, while the upstream price of iron phosphate remains stable. The price of lithium carbonate is fluctuating and downward, and the cost support for lithium iron phosphate is average. In addition, the poor performance of downstream demand has led to a loose and downward trend in the price of lithium iron phosphate. In a state of weak cost support and poor demand, the market maintains a weak operation.

In terms of futures, after a slight rebound in lithium carbonate futures prices recently, they have regained their weakness. On May 22nd, the opening price of the LC2407 main contract was 107000 yuan/ton, the closing price was 106400 yuan/ton, and the highest price was 107900 yuan/ton, with a daily decline of 0.79%. The transaction volume was 93800 lots, and the position was 180239 lots.

According to analysts from Business Society Lithium Carbonate, both domestic production and overseas imports of lithium carbonate are currently on the rise, and the market supply of lithium carbonate is relatively high. As the growth rate of terminal new energy vehicle sales slows down, the production of positive electrode materials slows down, and the overall contradiction in lithium salt fundamentals increases, it is expected that the short-term spot market for lithium carbonate will have weak transactions, and prices will continue to operate steadily with a moderate to weak trend.