The lithium carbonate futures price moved ranegbound last Friday, closing the session with mild gains. The downstream buyers largely stayed on the sidelines and showed no clear signs of chasing prices. Traders' marketable lithium carbonate inventories continued to decline.
While the lithium carbonate destocking pace is expected to accelerate in July and August, uncertainty over future demand has weighed on price valuations when the supply ramp-up is relatively certain driven by elevated lithium carbonate valuations. Demand prospects have yet to be validated, and near-term upside catalysts are lacking. Going forward, attention should be paid to the scale and sustainability of destocking in the second half, the realization of demand growth, and the pace of warehouse receipt drawdowns. The lithium prices are expected to remain rangebound in the near term.
