Everbright Futures: Post-holiday lithium carbonate continues to rebound, focus on the sustainability of inventory depletion

After the Spring Festival, lithium carbonate prices continue to rebound. Driven by downstream production expectations and rumors of exports from Africa, lithium carbonate prices surged over 10% yesterday, and continued to increase today, with intraday gains exceeding 6%. Based on February production estimates, short-term inventory levels are likely to continue decreasing, which could serve as a significant bullish support. However, on the news front, PLS announced it will restart the Ngungaju lithium mine in Pilgangoora, Western Australia, in July this year (with an annual capacity of about 200,000 tons), and has already begun a comprehensive four-month preparation for resumption of production. US media reports indicate that the US government is considering imposing a new round of tariffs on about six industries under the pretext of “national security.” Insiders say the proposed tariffs may cover industries such as large batteries, cast iron and iron fittings, plastic pipes, industrial chemicals, as well as power grid and telecommunications equipment. If the supply and demand for lithium carbonate weaken later, caution should be exercised regarding the risk of high prices. (Everbright Futures)