CITIC Futures: Demand performance exceeds expectations, lithium carbonate fluctuates with a slight upward trend

From a fundamental perspective, in May, supply contracted while demand continued to grow, facing a slightly tight outlook. Although domestic sales of new energy vehicles performed poorly in the first quarter of 2026, due to the increase in battery capacity per vehicle, actual battery demand in the first quarter showed year-on-year growth. At the same time, under the stimulation of high oil prices, it is expected that exports of new energy vehicles will maintain a strong performance in the second quarter. Battery storage shipments in the first quarter also exceeded expectations, leading to impressive production schedules in May and June, with overall demand improving. The supply side faces significant reduction, the export quota issue for Zimbabwe has been resolved, but shipping times will be delayed. It is expected that there will be a mineral shortage in May and June. Under market sentiment and the slightly tight outlook in May, prices are expected to perform relatively strongly in the medium term. It is advisable to buy on dips after a correction. (CITIC Futures)