China's domestic lithium carbonate prices recorded another winning day yesterday, with support stemming primarily from slower-than-expected supply recovery as well as robust demand in the upcoming traditional seasonal high. On the one hand, the lithium ore imports from Zimbabwe dropped nearly 50% MoM in July, while domestic lithium carbonate production remained slighly constrained by overhaul.
On the demand end, the LFP cathode production scheduling for September will increase further compared with that in August, and the battery cell plants have been active in production as well, which has kept the monthly balance sheet in deficit. Yet, GFEX warrants have been accumulating and now stood above 40,000 lots. It is expected that the lithium carbonate prices will remain rangebound in the near term.
