CITIC Securities: Supply improves, demand remains strong, and lithium prices fluctuate at high levels

CITIC Construction Investment pointed out that Zimbabwe’s lithium concentrate exports have resumed, and mining companies have begun shipments. It is expected to effectively supplement domestic supply from late June to early July, easing the anticipated tight lithium ore supply. However, in the short term, lithium ore inventories are low, processing fees are low, and foreign purchase ore companies face cost pressures, so the tight situation will continue. Consumer demand remains strong, energy storage orders are full, power demand continues to rise, and battery stockpiling needs after new model releases are increasing. Meanwhile, overseas new energy vehicles are performing well, expanding exports and boosting power battery shipments. According to SMM, this week’s sample lithium salt inventory is 101k tons, down 1,255 tons month-on-month. From May to June, a de-stocking trend is expected to continue, supporting lithium prices.