For lithium carbonate, the recent sustained decline in lithium carbonate prices is partly attributable to the concentrated sell-off of hidden lithium carbonate inventories around the Yuan 200,000/tonne level, which has disrupted the spot market. At the same time, a crackdown on invoicing practices among traders has tightened their liquidity, leaving the spot market with weak capacity to absorb supply and contributing to the rapid price drop. Yet, the demand remains strong in June-July, with production schedules for lithium iron phosphate (LFP) battery cells in June expected to increase by around 3-4% month-on-month compared with May.