[NEWS] Lithium Prices Plummet 100,000 CNY in 2 Months to Reach New Low

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Source to China Times, due to weak demand and inventory piling up, the prices of a key chemical raw material, lithium carbonate, have recently been on a declining trend. Since the launch of lithium carbonate futures on the mainland on July 21, in just over two months, the price of lithium has fallen by nearly 100,000 CNY, marking a 39% decrease. In late September, lithium carbonate futures prices briefly dropped below 150,000 CNY per ton, reaching 145,000 CNY, marking a new low since their introduction.

Market analysts suggest that the current price of lithium carbonate futures on the mainland is around 150,000 yuan per ton. In the short term, prices are susceptible to the impact of supply contraction. While there may be some upward momentum following the sharp decline, the strength of the rebound is limited.

According to STCN from China, in the spot market on October 4, the benchmark price for battery-grade lithium carbonate was 175,000 CNY per ton, showing a monthly decline of over 20% compared to the 224,000 CNY per ton at the beginning of September. The benchmark price for industrial-grade lithium carbonate on the same day was 161,000 CNY per ton, reflecting a decrease of 23.33% by MoM.

Ruida Futures stated that from a fundamental perspective, the current situation of relatively ample lithium carbonate supply has not changed for now. With the recovery of operating rates in 2Q23, demand has not met expectations, leading to the inventory kept piling up, and continuous price declines.