The fundamentals of the lithium market remained solid. On the supply side, China's lithium carbonate supply has tightened marginally in July, as some spodumene-based lithium salt producers have reduced output for maintenance, while lithium carbonate shipment from Chile have returned to a relatively slow pace. On the demand side, July LFP production schedules have exceeded expectations, showing resilience despite the off-season. However, downstream buyers have largely stuck to essential procurement, with wait-and-see sentiment growing and no significant restocking activity observed above RMB 150,000/tonne. For lithium ore, the spots availability remained tight, and some downstream players have even started to lock in supply for October.
However, the lithium carbonate futures price continued to pull back with players wrestling over the supply-demand balance in the second half. While the demand end has remained persistently robust, the expected supply ramp-up has kept the market players on edge. The lithium carbonate prices are expected to remain rangebound in the near term.
