On April 20th, the spot price of lithium carbonate continued to rise.

Today, the spot price of battery-grade lithium carbonate in the SMM market continued to rise compared to the previous trading day. On the futures side, the lithium carbonate 2609 contract opened high at 177k yuan/ton today, briefly dipped to 174.8k yuan/ton after the opening, then quickly rebounded, subsequently fluctuating upward and stabilizing above the average line; in the afternoon, it accelerated to a new intraday high of 181.4k yuan/ton, then slightly retreated to 180.2k yuan/ton at the close, up 2.6%. As of the close, open interest increased by 27k lots compared to the previous trading day.

In the spot market, as prices continued to rise, upstream traders kept releasing goods, with some quotes further raised above 180k yuan/ton. In contrast, downstream material manufacturers remained cautious and observant, mainly purchasing only for immediate needs, with some using post-price negotiation methods. Due to the ongoing release of upstream scattered orders, downstream buyers mainly consumed their own inventories, resulting in lower actual procurement volumes and some traders facing significant margin call pressures.

Looking ahead, as new production capacity for lithium iron phosphate (LFP) is gradually put into operation in the first half of the year, it is expected to continue directly boosting lithium carbonate demand. On the supply side, since Zimbabwe fully banned lithium ore exports at the end of February, no lithium concentrate has been shipped so far. Coupled with disturbances caused by the license renewal of mines in Jiangxi, lithium carbonate is expected to remain in a tight balance in the second quarter, and prices are likely to stay relatively strong in the short term. (SMM)