Rida Futures: The fundamentals of lithium carbonate are likely in a stage of temporary supply stabilization and slight improvement in demand

Market trend: The main contract for lithium carbonate fluctuated and strengthened, closing up by +4.63%. Open interest increased compared to the previous period, spot prices are at a premium to futures, and the basis weakened compared to the previous day. Fundamentally, lithium miners are showing strong willingness to maintain prices, with mineral prices trending upward. Smelting plants have relatively sufficient raw materials, and a wait-and-see attitude prevails. On the supply side, smelting plants have sufficient internal raw material inventories, and some hedge operations occur during high market prices. Overall production remains stable, and shipment sentiment fluctuates with lithium prices. Domestic lithium carbonate supply is temporarily stable, with some convergence expected as the holiday approaches. On the demand side, due to significant lithium price fluctuations, downstream inquiries and stocking at lower prices have increased during price declines, while caution remains at high prices. Regarding inventories, upstream de-stocking and downstream replenishment are occurring, leading to a slight reduction in overall industry inventory, and spot transactions have improved compared to earlier periods. Overall, the fundamentals of lithium carbonate may be in a stage of supply stabilization with a slight improvement in demand. (Ruida Futures)