Lithium Prices Fall, But China Demand for Restocking and August Output Remains Firm

China Securities reported in a research note from China Securities Co., Ltd. that lithium prices have fallen sharply recently, while upstream producers are becoming more reluctant to sell and are pushing back on prices. Some spot quotes are still above 160,000 yuan per ton, while material makers are showing stronger buying interest below 150,000 yuan per ton, although purchases remain cautious and focused mainly on essential needs. According to Jiemian News, lithium carbonate output is declining as some lithium salt plants enter scheduled maintenance, causing a marked drop in spodumene production lines. On the demand side, July production scheduling is expected to keep rising, with material plants' operating rates staying at a high level and forecast to increase by more than 5% month on month. August scheduling is also expected to remain positive month on month, and a fourth-quarter peak season is still seen as likely on expectations of year-end rush production and export orders.