SMM

Last week, spot lithium carbonate prices continued to decline, with a drop of around 400 yuan/mt. Based on current market transactions, as the year-end approaches, downstream material plants controlled their inventory levels and mainly made just-in-time procurement, resulting in overall lukewarm purchasing sentiment. Traders' inventory levels remained high, and some traders promoted transactions with downstream enterprises at lower price points to destock, thus dragging down the center of spot lithium carbonate transaction prices. Meanwhile, upstream lithium chemical smelters showed strong sentiment to stand firm on quotes as the time for negotiating long-term contracts approached. From the perspective of apparent demand in December, the destocking scale of lithium carbonate is expected to narrow significantly MoM, and lithium carbonate inventory levels are predicted to remain stable. Considering the current production status and psychological expectations of various upstream and downstream segments, as well as the cumulative inventory levels of lithium carbonate, spot lithium carbonate prices are expected to fluctuate rangebound with potential for slight declines.