CICC Wealth Futures: The fundamentals of lithium carbonate may be in a stage of increased supply and cautious demand

On the supply side, lithium salt plants are operating at a high level of activity, and as lithium carbonate prices improve, shipment willingness is relatively proactive. In terms of imports, Chile’s exports in March declined month-on-month, and it is expected that the subsequent domestic import volume upon arrival may be affected, but overall domestic supply remains relatively sufficient. On the demand side, as lithium prices rise, downstream purchasing sentiment gradually becomes more cautious. Due to the still significant psychological price gap between upstream and downstream, coupled with good upstream production conditions, lithium carbonate social inventories have slightly accumulated. Overall, the fundamentals of lithium carbonate may be in a stage of increased supply and cautious demand, with industry inventories slightly accumulating. The lithium carbonate market continues to be dominated by expectations, with a volatile and slightly strong trend; we still warn of the risk of chasing the high. (CICC Wealth Futures)