Demand boosted lithium carbonate prices rose more than 70% in 40 days
2023/6/12
New energy vehicle market boom, energy storage demand gradually release, driving upstream raw material demand higher, pushing up its price. Industry sources said that the current price of lithium carbonate has shown an upward reversal of the trend, is expected to be followed by the industry chain price stabilization, enterprise production scheduling ring will improve, the downstream energy storage installed demand is expected to take off.
Lithium carbonate prices rebounded
Since mid to late April, the average price of battery-grade lithium carbonate bottomed out after a rapid rebound. Data show that as of June 7, battery-grade lithium carbonate prices reported 310,000 yuan / ton, compared to this year's low of 176,500 yuan / ton, an increase of 76% in 40 days.
"A lot more orders in May, the production line are running at full capacity, the current month's orders have a lot of indigestible pushed back 1-2 months, anxious orders can only not take." Zhang Yu (a pseudonym), the person in charge of a domestic lithium carbonate manufacturer, told reporters.
The reporter also learned from a domestic power battery manufacturers market procurement responsible person, "in April this year (lithium carbonate) prices fell to more than 100,000 yuan per ton, some (upstream) factory pity sales, stocked a lot of goods. Recently the downstream sales up, we have a lot more orders on hand, almost half a month to clear the inventory of several partner factories."
"Now basically produce and sell now, while the production line shipments, while packing the truck will be pulled away, will not be stored in the warehouse for more than a day, the manpower has doubled, two shifts to ensure production." Zhang Yu said.
Ganfeng lithium independent director Wang Jinben previously said that the current end market demand is still in, with the arrival of new energy vehicle sales season, the terminal demand is expected to further rebound, considering the lithium resources production capacity release rate is not very fast, so lithium salt prices downward is unlikely.
EVERLIGHT recently said in the investor relations activities, because the current material prices have stabilized, the company's production line commissioning is also basically completed, in a stable state, and the yield is also at a high level. From May, the production schedule has improved compared to the past.
Increased downstream demand
As the main downstream demand side of the power battery, the new energy vehicle sales rebounded, driving the demand for power battery raw materials, represented by lithium carbonate, to pick up, boosting its price.
The latest data released by the Passenger Association shows that, according to preliminary statistics, in May, the passenger car market retailed 557,000 new energy vehicles, an increase of 55% year-on-year and 6% year-on-year. So far this year, the passenger car market retail sales of new energy vehicles totaled 2.4 million units, an increase of 40% year-on-year.
In terms of wholesale volume, in May, the national passenger car manufacturers of new energy vehicles wholesale 671,000 units, an increase of 59% year-on-year and 11% YoY; since this year, the cumulative wholesale 2.779 million units, an increase of 47% YoY.
The development of new energy vehicle industry is strongly supported by national policies, the market space is vast. Recently held the State Council executive meeting pointed out that to continue and optimize the new energy vehicle vehicle purchase tax exemption policy, build high-quality charging infrastructure system, to further stabilize market expectations, optimize the consumption environment, greater release of new energy vehicle consumption potential.
According to Huaxi Securities, the current point of time is the starting point of new energy vehicles towards the popular market. The continuation and optimization of the purchase tax exemption policy, coupled with the construction of charging infrastructure, is expected to optimize the consumption and use environment of new energy vehicles, solve the consumption pain points and accelerate the opening of the mainstream market.
In addition, the demand for new energy storage led by lithium batteries is also growing rapidly, and the demand for upstream lithium resources is increasing. BOC Securities expects that the global demand for energy storage batteries will reach 260GWh in 2023 and increase to 625GWh by 2025, with an average annual compound growth rate of 54.9%.
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