lithium carbonate

prices have dropped significantly this week.

Some overseas lithium mines are gradually adjusting their settlement methods from Q-1 to M+1, and lithium salt companies that purchase lithium mines show signs of marginal cost reduction; Some lithium salt enterprises that previously ceased production or underwent maintenance gradually resumed normal production in early November, and some salt lake enterprises still have the possibility of releasing goods in the future; Add the increase in exports of lithium carbonate from Chile to China in October; Expected increase in domestic lithium carbonate supply in November. Under the downward trend of lithium carbonate prices, positive electrode material companies do not have the idea of acquiring goods through bulk orders. Recently, upstream and downstream companies mainly trade in the form of long orders; However, the premium of lithium carbonate in the trade market has gradually decreased, and some trading companies even shipped at a discount this week. The short-term imbalance between spot supply and demand has also led to an accelerated price decline.

However, after a significant drop in prices, the purchasing sentiment of some downstream positive electrode material companies has also undergone subtle changes when spot prices are absolutely low. Although their attitude towards essential procurement has not changed, the market inquiry situation is gradually positive, and the decline in spot prices of lithium carbonate in the future may gradually slow down.

Cobalt salts (cobalt sulfate and cobalt chloride)

This week, cobalt salt prices remain downward. In terms of cobalt sulfate, due to recent poor shipments from smelters, the supply side has accumulated some inventory in the factory warehouse, and there is also a certain amount of inventory in the trade process, so the overall supply is relatively sufficient. From the demand side, downstream demand is cold, and due to the market's pessimistic expectations for the future, transactions are relatively low. Overall, due to the strong supply and weak demand in the market, some enterprises, under the pressure of inventory, have lowered prices and sold off, driving down the price of cobalt sulfate. In terms of cobalt chloride, the supply side is similar to cobalt sulfate. On the demand side, early consumption occurs in the early stage, and recent transactions and inquiries are even more scarce. Overall, due to weak downstream demand and oversupply, spot prices have fallen under pressure.

Lithium manganese oxide

This week, the lithium manganese oxide market continued to remain sluggish, with SMM lithium manganese oxide (capacity type) prices ranging from 46000 to 51000 yuan/ton. From the current perspective, the market for lithium manganese oxide cathode materials has gradually cooled down since the beginning of the fourth quarter. The price of lithium carbonate at the upstream raw material end has fallen, coupled with the lack of positive factors at the end, and the dual impact of cost and demand has led to a continuous decline in the price of lithium manganese oxide. From market feedback, it can be seen that downstream battery cell factories are currently in the stage of selling and destocking, and there is relatively little demand for lithium manganese oxide procurement. Therefore, many lithium manganese oxide companies consider that their current profits are severely inverted, and they have no choice but to reduce the operating rate to the lowest level. At the same time, they are closing their prices without quoting, reducing losses.

Lithium iron phosphate

This week, the price of lithium iron phosphate continued to decline, and market transactions were mainly based on long-term contracts. On the cost side, the production cost of iron lithium materials decreases with the decline in lithium salt prices. On the supply side, iron lithium production enterprises determine production based on sales and continue to reduce inventory. The demand side, power side, and energy storage side have weak year-end momentum expectations, with a focus on digesting raw material inventory and weak demand for iron lithium materials. It is estimated that the price of lithium iron phosphate will continue to decline in the future.

Negative electrode

The price of negative electrode materials has slightly decreased this week. In terms of cost, the price of low sulfur petroleum coke remains stable; The price of oil based needle coke has slightly decreased, and the current production of needle coke as a negative electrode raw material is relatively low. Due to the low bargaining power of needle coke manufacturers for raw material slurry, strong cost support, and strong competition with downstream negative electrode factories, there is a strong willingness to support prices. It is expected that the price of oil based needle coke will enter a stalemate in the short term; The outsourcing price of graphitization has decreased due to the influence of bidding from leading downstream manufacturers. Some independent graphitization manufacturers may be approaching the cost line or have already incurred losses, and the subsequent graphitization prices may maintain a weak and stable trend. In terms of supply and demand, there is no sign of a rebound in demand in the downstream power storage market. With the gradual production of new negative electrode production lines, the situation of overcapacity has become increasingly serious. Although production costs may remain stable in the future, due to downstream demand pressure and market competition, it is difficult for the cost side to support the price of negative electrode materials, and there is still a risk of continued decline in negative electrode prices.

Electrolyte

This week, the price of electrolyte still slightly decreased. On the supply side, while lithium prices continue to decline, suppliers are cautious in purchasing lithium carbonate and hexafluoride, and hold a pessimistic attitude towards the future market, maintaining a state of production based on sales and basically not inventory. On the demand side, the terminal power and energy storage markets are still weak, and battery cell factories continue to lower prices for electrolyte factories. Some small and medium-sized battery cell factories purchase frequently and have a single discussion. On the cost side, as the price of lithium carbonate continues to decline, the price of hexafluoride also declines. The prices of solvents and additives remain stable. The overall cost of electrolyte has slightly decreased. Due to the current price exceeding the manufacturer's production cost line, the electrolytic plant has a certain willingness to increase prices, and it is expected that the price of electrolyte in the future will remain stable after a slight decrease.

Lithium battery recycling

The lithium battery recycling market was further affected by the sustained downward trend in lithium carbonate and nickel cobalt salt prices during the week, and the pessimistic sentiment in the recycling market was further intensified. On the issue of recycled waste, although traders in social trade channels are still showing a willingness to raise prices, some traders have loosened their willingness to do so due to the intensified downward trend in salt prices, resulting in a significant decline in market transaction intention prices and actual transaction prices. In terms of procurement difficulty, it has decreased compared to the previous few weeks. In terms of sales, towards the end of the year, there is a clear performance demand for some companies to destock, coupled with a clear downward trend in lithium carbonate prices. Therefore, some companies have begun to accelerate price reductions to destock. In terms of hierarchy, the intention of battery cell factories to promote inventory has been further strengthened, and there is already a tendency for some models of inventory A products to be sold at reduced prices in the market. It is reported that there have been reports that the intended shipping price of some A-type battery cells is close to the price of B-type battery cells.