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[Lithium carbonate supply is expected to increase, weakening market demand drags down prices]

According to the latest data, Hualian Futures recently analyzed and pointed out that the supply of lithium carbonate is showing an increasing trend. Domestic production continues to rise, especially in Jiangxi and Qinghai, where production operating rates show an upward trend. At the same time, the supply of imported minerals in Africa is also abundant, and many traders have purchased African minerals and opted for contract production methods. Chile's lithium carbonate exports increased significantly in April, and China's domestic imports are expected to increase significantly in May. Lithium carbonate prices showed a downward trend this week, and some downstream companies chose to purchase during low prices. However, downstream demand began to show signs of fatigue. The production of ternary materials decreased month-on-month, and the demand for iron-lithium remained stable. However, there are still signs of production cuts by large companies, and production plans may change within the month. Recently, the output of cathode materials has exceeded battery demand, and the industrial chain may face inventory accumulation. In addition, the increase in U.S. import tariffs on Chinese new energy-related products has an impact on market demand prospectsinfinitygametableprice; Inventories also increased significantly last week. Comprehensive analysis shows that the supply of lithium carbonate is still expected to increase, but due to the impact of the international situation, the supply of mines may decrease. Operationally, the Ic2407 contract recommends adopting a bearish strategy in the short term and focusing on the pressure level of 117000 yuan/ton.