Lithium Market Sees Inventory Decline Amid Strong Buying Interest

On May 28, according to Jin10, a research report by CITIC Securities indicated that as new market supplies are rapidly absorbed by demand, previously hidden inventories are becoming more apparent. SMM has adjusted its inventory structure, increasing the sample inventory from traders and battery manufacturers. The latest weekly inventory for new samples stands at 137,000 tons, a decrease of 0.8% from the previous week, while the old sample inventory is at 101,000 tons, down 1.2% week-on-week. As prices continue to decline, the willingness to purchase has intensified, with a gradual increase in restocking and procurement activities. This week, lithium carbonate production slightly decreased, mainly due to maintenance on spodumene production lines. In May and June, output is expected to remain low due to raw material shortages. Downstream energy storage production remains high, and the recovery in power provides bottom support, leading to short-term fluctuations in lithium prices.