The lithium carbonate prices closed the first trading post Chinese Dragon Boat Festival in the negative, with market players still trading the news of expected resumption at CATL's Jianxiawo Mine, which is potentially earlier than expected. In addition, Dazhong Mining newly put its 20,000-tonne-per-year lithium carbonate production line into operation, adding on future supply pressure.
Yet, the demand end remained robust, and spot procurement was quite robust when lithium prices were around Yuan 160,000/tonne. Nevertheless, the downstream cathode and battery cell plants turned cautious when lithium prices rebounded, which failed to sustain a continued price rally in the near term. Going forward, players are advised to watch the pace of shipments from Zimbabwe, the progress of subsequent approvals and production resumption at Jianxiawo, and the sustainability of downstream demand growth.
