According to the Commodity Market Analysis System of Shengyi Society, the price of lithium carbonate fluctuated weakly in early December. As of December 3, the domestic price of industrial grade lithium carbonate was 78400 yuan/ton, an increase of 2.08% from the same period last month at 76800 yuan/ton; The domestic price of battery grade lithium carbonate is 81000 yuan/ton, an increase of 2.02% compared to the same period last month at 79400 yuan/ton.

The supply side production continues to recover. Due to a slight rebound in lithium carbonate prices during November, companies have good profits from lithium carbonate after hedging, and manufacturers have begun to release production.

The demand side is seasonally weak, with demand exceeding expectations from the end of October to November. December is the traditional off-season, but due to local subsidies for new energy vehicles and policies such as trade in, orders from car companies are expected to smooth out and there will be no cliff like decline in production scheduling.

The pace of destocking has slowed down, with spot inventory of 108300 tons this week, including 33900 tons of smelter inventory, 29300 tons of downstream inventory, and 45100 tons of other inventory. The destocking pace has slowed down, and the destocking process is mainly concentrated in traders. At the end of the year, there is a demand for capital recovery, and most traders choose to reduce inventory and sell spot goods at discounted prices starting from the end of the year.

Business Society’s lithium carbonate data analyst believes that it is expected that the supply will be strong and demand weak in December, and the domestic lithium carbonate market will still mainly operate in a range of fluctuations, making it difficult to have breakthrough performance. Specific market information still needs to be monitored.