The lithium carbonate prices pulled back along with the broad commodity market, when the Federal Reserve's hawkish stance and rising market expectations of further rate hikes have strengthened the US dollar and intensified concerns over tightening liquidity, leading to a broad decline in risk appetite.
In addition, the market concerns were further aggravated by rumors of someone entering the Jiangxiawo mining area, which was interpreted as a sign of preparations for a restart, though the news was not confirmed. On the demand end, the price cut encouraged downstream purchasing of both lithium ore and carbonate. Yet, recent survey suggested that the commissioning of new LFP capacity fell short of expectations, as some facilities required additional time for commissioning and adjustment. As a result, overall LFP output growth is expected to be limited, with July production schedules projected to increase by only 1-2% month-on-month.
