According to the monitoring of the commodity market analysis system of Shengyi Society, lithium carbonate continued to decline at the end of August. On August 23rd, the average domestic mixed price of industrial grade lithium carbonate was 81600 yuan/ton, a decrease of 8.93% compared to the average price of 89600 yuan/ton on August 1st. On August 23rd, the average domestic mixed price of battery grade lithium carbonate was 84400 yuan/ton, a decrease of 8.16% compared to the average price of 92200 yuan/ton on August 1st.

It is worth noting that although the spot market continues to decline, lithium carbonate futures rebounded strongly this week (08.19-08.23), rising strongly for three consecutive trading days, and the spot trading atmosphere has also improved accordingly.

Supply side: Mines have no plans to reduce production, and the rebound in futures prices will stimulate smelters’ enthusiasm for hedging production. Recently, some low-grade lithium mines from Africa have arrived at ports one after another, and the pattern of oversupply is difficult to reverse.

On the demand side: According to data from the China Association of Automobile Manufacturers, from August 1st to 11th, the retail sales of new energy passenger vehicles reached 274000 units, a significant increase of 57% year-on-year and a month on month growth rate of 25%. Since 2024, the retail sales of new energy passenger vehicles have reached 5.263 million units, a year-on-year increase of 35%. With the increase in sales of new energy vehicles, the demand for lithium carbonate will also rise.

The lithium carbonate analyst from Shengyi Society believes that the current excess pressure in the lithium carbonate market is obvious, but the futures market is rising and demand is increasing. It is expected that the short-term lithium carbonate price will remain in a wait-and-see situation and maintain a low consolidation.