The most-traded lithium carbonate futures contract at Guangzhou Futures Exchange (GFEX) showed a V-shaped trend in the session ending July 24, with the settlement price falling 5.69% from the previous Friday July 20. Spot market activity remained subdued, largely because downstream buyers had built ample inventories during the earlier price decline, leaving a significant portion of lithium carbonate stocks accumulated downstream. As a result, despite lower absolute prices, downstream demand for spot purchases has remained weak. On the supply side, August is expected to see weaker supply and stronger demand, with the balance sheet pointing to a significant drawdown due to continued feedstock constraints.