On the fundamentals, after the lithium salt prices declined, the downstream buyers stepped up to purchase on dips, with spot transaction volumes picking up. In addition, Mysteel's weekly survey data showed destocking of lithium carbonate continuing across the industry chain but at a slower pace, as lithium refineries gradually resumed production after maintenance. September lithium carbonate production guidance is expected to rise around 10% month-on-month.
In addition, pressure lingered partly due to building warrants. In addition, DD Times Think Tank's survey of 38 major battery producers shows China's September 2026 lithium-ion battery production schedules (power, energy storage, and consumer) at 332 GWh, up 9.2% month-on-month. The increase is largely driven by overseas exports of 314Ah and larger-capacity cells, as year-end grid-connection deadlines in the US and Middle East have led to full order books at leading battery producers, leaving players concerned about the sustainability on the demand end. Overall, Mysteel expects near-term destocking to push lithium carbonate prices toward Yuan 170,000/tonne.
