According to the Commodity Market Analysis System of Shengyi Society, the domestic lithium carbonate market was weak in September. As of September 25th, the average price of battery grade lithium carbonate was 77800 yuan/ton, a decrease of 7.82% from the same period last month when it was 84400 yuan/ton. The average price of industrial grade lithium carbonate is 75200 yuan/ton, a decrease of 7.84% from the same period last month when it was 81600 yuan/ton.

1、 The reduction in production is lower than expected

Recently, Ningde Times Yichun project and Jiuling Lithium Industry announced the suspension of production for maintenance. However, actual production data shows that domestic lithium carbonate production has decreased by about 3000 tons per month, which is significantly lower than the market expectation of around 5000 tons. The supply of lithium carbonate in the market has not significantly decreased as expected, which has not provided favorable support for prices.

2、 Demand peak season falls short of high inventory

Currently, it is the peak demand season for lithium carbonate, and the rapid development of new energy vehicles and energy storage fields has significantly increased the demand for lithium carbonate. In terms of power batteries, in August, the installed capacity of power batteries in China was 47.2GWh, a month on month increase of 13.5% and a year-on-year increase of 35.3%. Among them, the installed capacity of ternary batteries was 12.1 GWh, accounting for 25.7% of the total installed capacity, a month on month increase of 6.8%, and a year-on-year increase of 12.3%; The installed capacity of lithium iron phosphate batteries was 35.0 GWh, accounting for 74.2% of the total installed capacity, a month on month increase of 16.1%, and a year-on-year increase of 45.6%.

Yahua Group’s annual production of 100000 tons in Sichuan and Ganfeng Lithium’s integrated project of lithium iron phosphate in Inner Mongolia have both made new progress this month, with increasing pressure on the supply side. The overall supply and demand are matched to the inventory side, and although inventory continues to be depleted, the speed of depletion is not very ideal.

Business Society’s lithium carbonate data analyst believes that the lithium carbonate market showed a weak and volatile trend in September. The arrival of the peak demand season and the growing demand for new energy vehicles and energy storage have provided certain support for the market. However, the unsatisfactory speed of inventory turnover and the dynamic changes in market supply and demand may make it difficult for prices to experience significant increases or decreases.