The most-traded GFEX lithium carbonate futures contract turned bearish and closed the day session in the negative yesterday. The pressure primarily came from new progress on Jianxiawo Mine's restart, where the administration sent a notice regarding the pre-approval of the project's EIA. In addition, some lithium carbonate production lines that carried out overhaul gradually resumed the production, adding to pressure on the supply side. Moreover, some market players were observed to open hedging positions when carbonate prices were between Yuan 150,000-160,000/tonne or above, limiting further upside.
Nevertheless, the fundamentals remained supported by the upcoming traditional seasonal high, with early signs of continued increase in production scheduling ahead. Therefore, the lithium carbonate prices are likely to keep rangebound in the near future.
