The most-traded GFEX lithium carbonate futures price hovered rangebound around Yuan 140,000/tonne, indicating intesive long-short game. Mysteel's latest survey showed a weekly lithium carbonate inventory drawdown of around 4,350 tonnes, yet the market sentiment was constrained by mounting warrants. In addition, the lithium ore prices were relatively soft recently, with processing charges for African ore moving up to Yuan 19,000/tonne, weakening the cost support for lithium carbonate.
Overall, the lithium carbonate prices are projected to keep rangebound in the near term, with the traditional seasonal high and continued inventory drawdown providing underlying support, while rising supply and soft lithium ore prices cap the momentum.
