The trading of lithium carbonate in the spot market is relatively weak, but expectations for the long term are improving. It is anticipated that inventory will decrease month by month in the second half of the year.

Lithium carbonate is oscillating in the range of 130,000 to 160,000 yuan/ton in the short term. Spot transactions are relatively weak, but expectations for the longer term are improving, with the inter-month price difference narrowing. On the supply side, production is decreasing while trade inventories are accumulating, and warehouse receipts at high levels are suppressing rebounds; production in August has increased compared to the previous month. On the demand side, orders for iron-lithium are robust, and battery production has risen, entering a peak stocking cycle. In terms of policy, a consumption tax will be imposed on lithium batteries starting from September, which will raise costs in the long term and accelerate the clearance of capacity. It is expected that inventory will be reduced month by month in the second half of the year, with the inventory-to-sales ratio decreasing by the end of the year.