CITIC Securities: The fundamentals of lithium are relatively strong, and concerns about tightening supply in the second quarter continue to intensify.

The CITIC Securities research report pointed out that the Jiangxi Spodumene Lithium Mine is facing production pressure due to the subsequent process of certificate renewal. After the implementation of the "Comprehensive Solid Waste Management Action Plan", the supervision of tailings treatment has become stricter, magnifying concerns on the supply side. At the same time, some lithium salt plants have maintenance plans during the Spring Festival, with little flexibility in the current supply side; although the annual supply increment is significant, it is not helpful in alleviating the tense situation in the first half of the year. On the demand side, due to the anticipation of export refunds, the off-season is not weak, storage accumulation is difficult, and a tight supply foundation for the second quarter has been laid. According to SMM, domestic lithium carbonate inventory weekly decreased by 783 tons, upstream lithium salt plant finished product inventory is less than 20,000 tons, downstream material plant inventory is less than 40,000 tons, at a relatively low level, falling prices bring about obvious stocking effects. The off-season is not weak, maintaining destocking, and the lithium fundamentals are relatively strong, concerns about tight supply in the second quarter continue to intensify.