CICC Wealth Futures: Structural contradictions on the supply side of lithium carbonate still exist, with tightness on the mining end

At present, the fundamentals for lithium carbonate are both strong on the supply and demand sides. However, structural contradictions in the supply end still remain: on the mine side, supply is tight, with visible lithium ore inventories still staying at a low level; meanwhile, spodumene concentrate processing fees remain low. But it is expected that the tightest phase may gradually ease. After July, there is an expectation of shipments arriving from Zimbabwe’s mines. On the lithium salt end, conditions are relatively loose at this stage, with domestic output, the import side, and both on-balance-sheet and off-balance-sheet inventories all positioned at relatively high levels. In the short term, the salt end is not in short supply. The market is highly focused on the supply side, but attention should be paid to the continued weakness in new energy vehicle sales and the extent to which the demand side may restrain prices. (CICC Wealth Futures)
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