Lithium carbonate futures reversed considerably on July 22, although spot and uncooked materials costs traded softer. The September contract closed at 143,300 yuan/ton after buying and selling in an 8,000-yuan vary intra-session.
The above futures acquire was at 2.21% on Raging Buffalo’s SMM chart from the settlement value, regardless of ongoing downward momentum in spot carbonate, spodumene focus, and lithium hydroxide markets, based on Carl Capolingua.
Lithium Futures Rebound Off Intraday Low
SMM put the LC2609 contract at 143,300 yuan/ton on the shut, up 3,100 yuan (2.21%) on the earlier settlement of 140,200 yuan/ton. Carl Capolingua reported the identical futures value at 143,300 yuan, the next 1.2% acquire, which measures the near the earlier closing value of 141,620 yuan/ton somewhat than settlement.
Buying and selling was at 142,980 yuan/ton opening, with sellers pushing the worth to 137,220 yuan/ton. Consumers re-entered, and the worth broke above 140,000 yuan/ton by the afternoon. The rebound reached a every day excessive of 145,200 yuan/ton earlier than the worth softened to 143,300 yuan/ton on the closing value.
In the meantime, as per the chart, the worth remained greater than the opening value and the earlier shut. Quantity at 282,781 contracts was round 39.98 billion yuan in turnover. Open curiosity closed at 370,958 contracts, down 4,227.
SMM’s intra-day chart exhibits a lot of the quantity got here in in the course of the upward transfer and the worth traded between 142,000 and 145,000 yuan/ton. Speedy resistance is on the 145,200 yuan/ton excessive, whereas assist is discovered round 142,900 yuan/ton earlier than the earlier settlement of 140,200 yuan/ton.
Spot Lithium Markets Stay Softer
Bodily lithium costs didn’t observe the futures upward transfer. Carl Capolingua reported the SMM spot value for lithium carbonate at 143,000 yuan/ton, down 0.7%. That’s about the identical because the futures shut however with completely different value motion and timing. Spot carbonate costs continued to ease whereas futures turned greater on the session.
Spodumene concentrate prices additionally stayed tender. SMM’s focus index at $2,075/ton is down 0.5%, whereas Australian spot focus was at $2,100/ton, additionally down 0.5% in each circumstances. Spodumene is a key uncooked materials for producing lithium chemical substances.
Lithium hydroxide recorded a deeper decline than carbonate and spodumene focus, at 0.8%. SMM put 56.5% hydroxide at 130,500 yuan/ton. All of those readings present completely different circumstances prevailing in futures in comparison with bodily commodity markets.
Futures have been on the rise whereas spot chemical and mined focus costs trended decrease.
Raging Buffalo’s chart exhibits futures broke under reference on an earlier dip earlier than the afternoon rebound, which despatched the contract properly above the every day common on a pointy run greater.
Lithium Americas Nears a Rising Trendline
MarketMaestro analyzed Lithium Americas shares as an alternative of the contract. The chart signifies a downtrend in shares following an earlier rebound, reflecting each macro market circumstances and company-specific points, with the dilution impression and dangers tied to the Strait of Hormuz cited as additional strain.
A rising assist line drawn by means of the 2012 low continues upward, and shares traded again towards the long-term trendline with the latest value decline.
Based on the chart, the shares bounced off the development line throughout 2024 and 2025 earlier than rising towards averages, at which they turned decrease once more.
A number of transferring averages are actually above the final candle, suggesting a robust space of resistance. Earlier resistance on the $9 horizontal stage additionally sits properly above value. Momentum indicators are wanting weaker after a optimistic surge in 2025, and the month-to-month RSI is under the sign line with slower progress development bars. The rising assist line is nearing the present value stage.
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