This week, spot lithium carbonate prices continued to decline, with a drop of around 800 yuan/mt. Today, the SMM battery-grade lithium carbonate index price stood at 75,369 yuan/mt; battery-grade lithium carbonate was priced at 74,400-76,300 yuan/mt, with an average price of 75,350 yuan/mt; industrial-grade lithium carbonate was priced at 72,900-73,900 yuan/mt, with an average price of 73,400 yuan/mt.
Supply side, weekly lithium carbonate production continued to increase, though the growth rate gradually slowed. Most lithium chemical plants that had undergone production line maintenance have resumed normal operations, and lithium carbonate supply remains robust. Demand side, some downstream material plants may see March production schedules fall short of earlier optimistic expectations, with overall growth relatively limited. Compared to upstream lithium carbonate output, downstream production schedule growth is relatively slower, leading to a continued surplus in lithium carbonate supply and demand.
From the current market transaction perspective, due to the persistent surplus in fundamentals, spot lithium carbonate prices have shown a downward trend. At these relatively low price levels, downstream purchase willingness has strengthened, and spot transactions this week have significantly improved WoW. Moreover, most transactions were between traders and downstream material plants, dragging spot lithium carbonate prices downward, while upstream lithium chemical plants still maintain a relatively firm sentiment to stand firm on quotes. Considering the clear trend of increased domestic lithium carbonate output and overseas lithium carbonate imports, domestic lithium carbonate is expected to remain in surplus in March, with a relatively large surplus margin, making spot lithium carbonate prices more likely to fall than rise.
