The lithium carbonate market was recently capped by bearish sentiment, though the fundamentals remained solid, evidenced by strong lithium carbonate production, active LFP cathode production scheduling, as well as sustained inventory drawdown. However, the market focus has now shifted to the revelation of hidden inventory overturning the earlier narrative of a supply tightness, in addition to mounting warrants. And the tug-of-war between bears and bulls remained intensive.
On the spot market, the spot basis strengthened, and downstream procurement was active with buyers building stocks for the traditional peak-season. Overall, against the backdrop of strong supply and demand, the market players will be weighing the weak expectations. It is likely that the lithium carbonate prices will hover rangebound in the near term.
