According to the monitoring of the commodity market analysis system of Business Society, the prices of industrial grade and battery grade lithium carbonate showed an overall downward trend in May. On May 31st, the average domestic mixed price of industrial grade lithium carbonate was 104400 yuan/ton, a decrease of 3.69% compared to the average price of 108400 yuan/ton on May 1st. On May 31st, the average domestic mixed price of battery grade lithium carbonate was 109400 yuan/ton, a decrease of 5.2% compared to the average price of 115400 yuan/ton on May 1st.

By observing market changes, it can be seen that the lithium carbonate spot market performed relatively calmly during the May Day holiday in early May, and there was a slight increase in market resumption prices after the holiday. In terms of supply, some lithium salt companies still maintain a positive attitude towards selling individual orders. Due to the rise in the market price of lithium carbonate futures, some lithium salt companies have slightly increased their prices for individual orders. In addition, with the continuous increase in imported lithium carbonate from January to April, domestic lithium carbonate imports may show an upward trend around May, which will provide a supplement to the domestic market supply.

In terms of demand, downstream enterprises such as positive electrodes have already prepared their goods in advance before the May Day holiday, and their raw material inventory is sufficient to support production orders for a period of time in the future. Additionally, some of the purchased goods have arrived during the holiday. Downstream enterprises tend to adopt a wait-and-see attitude after the holiday, and the market transaction situation is relatively flat. Downstream material suppliers may adopt a strategy of purchasing at lower prices at the current price.

In mid to late May, the price of lithium carbonate showed a stepwise downward trend. In terms of supply, the domestic production of lithium carbonate continued to increase from April to May. The production in April increased by 23% month on month, coupled with an increase in imported goods and recent arrivals to ports, resulting in a significant increase in lithium carbonate supply and continuous market supply pressure. In a state of relatively sufficient market supply, although lithium salt production enterprises are still relatively conservative in individual unit prices, they have slightly lowered their prices in response to market sentiment, and some traders have also simultaneously lowered their prices.

In terms of demand, some downstream positive electrode enterprises have made a small amount of bulk purchases in the context of price fluctuations. However, some downstream enterprises still do not have the willingness to replenish spot inventory due to their sufficient inventory of lithium carbonate, increased customer supply, and stable long-term contracts. Subsequently, the market was at the negotiation point of the long-term agreement in June, and most downstream enterprises were cautious and cautious about the current fluctuations in lithium carbonate prices. Although the market had good enthusiasm for inquiry, the actual outcome was not ideal. In addition, the production of ternary materials has decreased month on month, and the demand for iron and lithium has remained stable. Some large factories have reduced production, resulting in a weakening of downstream demand.

The weak consolidation and operation of the lithium hydroxide market, with slightly weak cost support in the first half of the year, and a decrease in downstream demand. Most downstream ternary enterprises mainly consume inventory, with moderate demand for high nickel. The market inquiry atmosphere is still good, but there is a clear wait-and-see attitude towards high priced raw materials, and actual transactions are flat. The focus of negotiations in the lithium hydroxide market is weak. In the second half of the year, the cost support was average, with the supply side industry operating at a low level and the demand side performing poorly. The market supply was mainly based on long-term contract orders, with limited individual transactions. The pace of market trading slowed down, and the lithium hydroxide market remained weak and stable.

The downstream price of lithium iron phosphate is weak and downward, while the upstream price of lithium carbonate is mainly weak and lacks support on the cost side. The focus of market negotiations is relatively low, and inventory remains at a high level. Market supply pressure continues, and some factories have a strong willingness to compromise prices, leading to a continued downward shift in spot prices. In the short term, lithium iron phosphate will maintain its current trend.

In terms of futures, the price of lithium carbonate futures in May rose slightly but fell significantly, with a volatile trend supported by bearish fundamentals and macro sentiment. On May 31st, the opening price of the LC2407 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 106000 yuan/ton, with a highest price of 107200 yuan/ton and a closing price of 104850 yuan/ton. The daily decline was 1.27%, with a trading volume of 102600 lots and a position of 161329 lots.

According to a lithium carbonate analyst from Business Society, the current lithium carbonate market continues to be competitive, and some upstream lithium salt factories still choose to maintain a certain price stance at the end of the month. At the end of May, the downstream market still showed lower willingness to purchase spot goods due to its high inventory, long-term cooperation, and high customer supply. It is expected that the price of lithium carbonate will remain in a wait-and-see situation in the short term and maintain a low consolidation.