The prices of lithium carbonate have been tied to a mild downward track recently. Mysteel attributes the reasons to the following.
On the cost side, the prices of spodumene concentrate dropped as a result of the pricing method, that is, the prices are set based on the quarterly prices offered by third parties.
For the market supply, there has been a clear increase due to the continuous commissioning of new projects. However, the supply in Sichuan Province may decrease due to potential power cuts in August.
For demand, the production and sales of NEVs in June performed well, and those in July are expected to be good as well. However, the actural transactions of lithium carbonate fell short and the traders had to lower the prices.
Looking ahead, the lithium carbonate prices will be subject to the power cuts in Sichuan. But recently, the market players are bracing for the upcoming listing of lithium carbonate futures contract on Guangzhou Futures Exchange in the near future, silencing the market.
Source: Mysteel
Written by Alex Xie, xiehan@mysteel.com
Edited by Aggie Hu, huchenying@mysteel.com
