According to data monitoring from Business Society, the prices of industrial grade and battery grade lithium carbonate were still in a downward trend in April, and prices rebounded towards the end of the month. On April 27th, the average domestic mixed price of industrial grade lithium carbonate was 174000 yuan/ton, a decrease of 22.53% compared to the average price of 224600 yuan/ton on April 1st. On April 27th, the average domestic mixed price of battery grade lithium carbonate was 200000 yuan/ton, a decrease of 22.78% compared to the average price of 259000 yuan/ton on April 1st.

By observing market changes, it can be seen that the overall price of lithium carbonate in April remained in a downward trend. In terms of supply, the overall inventory level of the lithium carbonate market in mid to early April was still at a high level, and there was no significant reduction in volume. Subsequently, due to the gradual warming of temperature, the production capacity of salt lakes in Qinghai and other regions gradually recovered, and with the continuous improvement of technologies such as spodumene lithium extraction, salt lake lithium extraction, and mica lithium extraction, the production of lithium carbonate steadily increased.

In late April, some mica enterprises and lithium salt factories still have a large number of OEM and production cuts due to cost inversion and other issues. Driving the recent decline in the operating rate of lithium carbonate, there has been a shortage of spot supply in the market, and the price of lithium carbonate has risen at the end of the month.

In terms of demand, the willingness to receive downstream goods in the lithium carbonate market was still weak in April, leading to increasingly weak market demand in the early stages. In addition, the growth rate of terminal new energy vehicle sales is still slow, and many downstream battery companies have sufficient reserves of lithium carbonate. As demand falls short of expectations, procurement reductions and delays in delivery occur from time to time, gradually spreading to the upstream of the industry chain. The increase in reserves has led to a lag in the actual demand for lithium carbonate.

As the end of the month approaches, the activity of the lithium carbonate market has increased, and downstream inquiries are gradually increasing. In addition, there are fewer spot goods in the market and holders are more reluctant to sell, which has led to an increasingly tight market situation and increased demand for lithium carbonate, leading to a rebound in prices.

The downstream lithium hydroxide market continued to decline, with a decline in the lithium carbonate market in early April, which resulted in poor support for the lithium hydroxide market. Supply side enterprises mainly focus on normal production, while domestic market demand is weak, spot market transactions are limited, and the mentality of operators is poor. The lithium hydroxide market is weak. In the middle of the year, downstream demand weakened, purchasing intentions were low, and high market prices put pressure on transactions. In the second half of the year, the cost support is still weak, and the market supply is relatively abundant. Downstream procurement is cautious, and the lithium hydroxide market continues to decline.

The downstream price of lithium iron phosphate remained downward, but in April, due to the continuous decline in lithium carbonate prices, there was a lack of support for the cost side of lithium iron phosphate. In addition, the demand for lithium iron phosphate in downstream electric vehicles is insufficient, and the industry is facing inventory pressure and continues to lower prices. Under the sentiment of buying up rather than falling, the purchasing enthusiasm is cold, and manufacturers often hold a wait-and-see attitude.

According to lithium carbonate analysts from Business Society, the current lithium carbonate market has active inquiries, but there are relatively few spot orders, highlighting the market’s reluctance to sell. In addition, due to factors such as upstream production reduction, terminal consumption, and inventory reduction, it is expected that the price of lithium carbonate may be slightly stronger in the short term.