The most-traded GFEX lithium carbonate futures price moved rangebound and closed the session with mild gains yesterday. With the expectations of future supply ramp-up and demand growth slowing largely priced in, the lithium carbonate futures price started to seek the floor with players generally believed that the current lithium prices have touched the cash cost of some marginal cost, leading to potential production cut. Yet, the bearish sentiment remained in place, capping any potential rebound.
On the fundamentals, the spot transactions were flat with cathode plants staying on the sidelines. Still, the basis against GFEX 2701 contract was firm due to relatively tight availability of spots. Overall, it is likely that the lithium carbonate prices will keep rangebound in the near term.
