What is the current profit situation of various lithium salt enterprises with fluctuating lithium prices?

Affected by the continuous decline of lithium carbonate, the price trends of raw materials and salt end are differentiated, 

and the profit trends of various types of lithium salt production enterprises are not the same.

 This article will analyze the recent situation of the lithium carbonate market and analyze the profit status of enterprises that adopt different types of raw materials.

In terms of lithium carbonate prices: In July, lithium carbonate prices showed a fluctuating downward trend. 

In terms of supply and demand, domestic lithium carbonate production remains high, while imports have declined slightly. In terms of demand, due to the impact of the off-season, 

there has been no significant recovery in market demand, resulting in a clear oversupply phenomenon throughout the month. 

In addition, the sufficient customer supply from downstream battery factories has further compressed the zero order procurement demand for positive electrode materials.

According to the latest market data, the SMM battery grade lithium carbonate index reached 84709 yuan/ton, an increase of 118 yuan/ton from the previous working day;

 The quotation range for battery grade lithium carbonate is 82900 to 86800 yuan/ton, with an average price of 84850 yuan/ton; 

The quotation range for industrial grade lithium carbonate is 79200 to 80600 yuan/ton, with an average price maintained at 79900 yuan/ton.

At present, there is no shortage of low-priced lithium carbonate supply in the market, and downstream material factories and traders are more active in inquiry activities, buying in small quantities at low prices. 

Some lithium salt factories are also conducting inventory depletion, and it is expected that transaction prices will decrease.

 Overall, although the market trading atmosphere has rebounded, the price of lithium carbonate will still be under pressure in the situation of oversupply.

Analyze the production profits of different types of raw materials for external procurement:

Regarding the production of lithium carbonate from external raw materials: The downward trend in lithium carbonate prices has put pressure on ore prices, 

but driven by the profit margin of the holding warehouse in May and June, mining enterprises have a strong reluctance to sell, and the price decline rate is slower than that of the salt end. 

In the short term, this has led to a sharp reduction in profit margins or even losses for enterprises that use pyroxene and mica ores to produce lithium carbonate. 

After entering July, the willingness of mines to raise prices has weakened, and the price difference of mineral salt has narrowed, 

which has improved the loss situation of lithium carbonate production enterprises using external raw materials.

Regarding the production of lithium carbonate from recycled materials: Due to the tight supply and demand of recycled materials, even though the price of nickel cobalt lithium salt has fallen, 

the price and coefficient of black powder have not achieved synchronous decline, resulting in the continuous phenomenon of cost inversion in the wet smelting process. 

The long-term cost inversion has prompted wet process enterprises that rely on external procurement to gradually shut down and reduce production,

 driving the industry's operating rate to continue to decline.

 Entering the second quarter, as the operating rate of wet process enterprises that require external recycling materials continues to decline,

 coupled with the simultaneous decline in nickel, cobalt, and lithium metal prices, the price and coefficient of black powder have loosened, and the losses of wet process plants have gradually eased.