According to the monitoring of the commodity market analysis system of Business Society, industrial grade lithium carbonate and battery grade lithium carbonate continued to rise this week. On March 14, 2024, the average domestic mixed price of industrial grade lithium carbonate was 107400 yuan/ton, an increase of 4.88% compared to the average price of 102400 yuan/ton on March 10. On March 14th, the average domestic mixed price of battery grade lithium carbonate was 116600 yuan/ton, an increase of 4.67% compared to the average price of 111400 yuan/ton on March 10th.

By observing market changes, it can be seen that the price of lithium carbonate has continued to rise this week. In terms of supply, it is currently understood that the environmental protection situation in Yichun has not affected the production of large lithium salt enterprises in the area, only affecting the maintenance and recovery progress of small and medium-sized lithium salt enterprises. The vast majority of lithium salt enterprises outside Yichun have basically resumed normal production. In addition, domestic imports of lithium carbonate may gradually arrive at the port in the middle and late stages, which will lead to an upward trend in the domestic supply of lithium carbonate in the future, thereby suppressing the rise in lithium carbonate prices.

In terms of demand, most downstream enterprises such as positive electrodes have recently continued to adopt a strategy of purchasing low-priced lithium carbonate on a mandatory basis, without the idea of a large amount of reserve inventory. Therefore, the acceptance of high priced lithium carbonate is still low. But with the gradual reduction of low-priced lithium carbonate in the market and the gradual increase in individual sales prices of lithium salt enterprises, the focus of market transaction prices is gradually rising.

The lithium hydroxide market is showing an upward trend. Affected by the upstream prices of spodumene concentrate and lithium carbonate, the increase in cost prices has boosted the mentality of businesses. The downstream demand for high nickel materials has improved, and the 3C digital market has performed average. Some manufacturers are gradually increasing production, and the enthusiasm for downstream inquiries is still good. The lithium hydroxide market transactions are still mainly long-term contract orders.

Downstream prices of lithium iron phosphate remain stable and upward, with active market inquiries. Long term orders are mainly executed, while individual transactions have shown signs of improvement. The price increase of lithium carbonate has driven up the production cost of iron lithium materials. Due to the increase in raw material prices, iron lithium enterprises have increased their production appropriately based on sales, resulting in an increase in the supply of iron lithium materials. The demand for power and energy storage is recovering, and the rise in raw materials has stimulated the enthusiasm of battery cell companies to lock orders in advance, leading to an increase in demand for iron lithium materials.

In terms of futures, the price of lithium carbonate futures rose first and then fell this week. On March 14, 2024, the price experienced a significant decline. The opening price of the LC2407 main contract was 119500 yuan/ton, the closing price was 112100 yuan/ton, and the highest price was 119800 yuan/ton. The daily decline was 7.01%, with 433100 transactions and 210848 positions.

According to analysts from Shengyishe Lithium Carbonate, the recent surge in lithium carbonate prices is mainly driven by factors such as tightening environmental pressure, reduced production in overseas mines, and strong expectations for the new energy vehicle terminal market. But with the recovery of domestic salt lake production and the arrival of import supply, the incremental pressure on the market for lithium carbonate is becoming apparent. In the state where demand has not yet been fully released, it is expected that the short-term change in spot price of lithium carbonate will be temporarily postponed.