Futures hit new low for the year
On October 19, the GFEX lithium carbonate main contract fell to an intraday low of 94,860 yuan/tonne, a new low for the year, before closing at 99,382 yuan/tonne, up 1.49% from the previous trading day. The contract closed at 99,755 yuan/tonne on October 20.
From the mid-May high of 209,800 yuan/tonne, lithium carbonate futures fell by more than 50% within five months. On October 19, the battery-grade lithium carbonate morning midpoint price was 102,750 yuan/tonne, and the afternoon spot index was 101,220 yuan/tonne.
Supply additions weigh on the market
On October 8, the environmental assessment for the Jianxiawo lithium mine of Yichun Times, a CATL company, re-entered the proposed acceptance publicity stage. At full production, Jianxiawo, described as the world's largest single lithium mica mine, corresponds to a supply capacity of about 100,000 tonnes LCE per year.
Jiangte Motor announced that the safety facility design for the 3-million-tonne-per-year mining project at its Qiankeng lithium mine passed review, corresponding to a theoretical annual output of about 15,000 tonnes LCE.
Inventories and demand trends
Under SMM statistics, social inventory of lithium carbonate stood at 139,500 tonnes as of October 8, and destocking continued around the National Day holiday. In early September, SMM adjusted its inventory statistical methodology, adding about 90,000 to 100,000 tonnes at once and bringing social inventory under the new methodology to 169,300 tonnes.