According to the Commodity Market Analysis System of Shengyi Society, the lithium carbonate market fluctuated at a low level at the end of October. As of October 28th, the average price of battery grade lithium carbonate was 79000 yuan/ton, an increase of 1.54% from 77800 yuan/ton at the beginning of the month and a decrease of 2.95% from 81400 yuan/ton last week. The average price of industrial grade lithium carbonate is 76400 yuan/ton, an increase of 1.6% from 75200 yuan/ton at the beginning of the month, and a decrease of 3.05% from 78800 yuan/ton last week.

Supply output maintains a month on month rebound, and supply pressure is maintained

In October, the annual production capacity of lithium carbonate smelting in China increased by 2000 tons. Lithium carbonate is still in the stage of capacity expansion, with a weekly output of 13423 tons, an increase of 66 tons compared to the previous period.

Demand remains strong

The consumption of terminal new energy vehicles remains strong under the promotion of policies and the seasonal effect of the traditional car market’s “golden nine and silver ten”: the production and sales volume of new energy vehicles, the loading volume of power batteries, the demand for energy storage projects, and the mid to high season have all increased, driving the destocking of lithium carbonate. The total inventory of lithium carbonate market shows a downward trend, factory inventory accumulates slightly, downstream inventory remains stable, and trade inventory rises.

Business Society’s lithium carbonate data analyst believes that the fundamental expectations for lithium carbonate are gradually returning to loose, and if there is no significant demand driven growth, it may further weaken.