CITIC Securities said last week’s sharp fall in lithium prices was driven by SMM (Shanghai Metals Market) revisions to lithium carbonate inventory scope and sample coverage, which created a large weekly inventory spike, not by a material deterioration in industry fundamentals. It expects a September pickup in lithium-battery production to deliver substantial incremental demand while overseas supply additions lag, likely widening the supply deficit. Single-week inventory noise is unlikely to chan

CITIC Securities said last week’s sharp fall in lithium prices was driven by SMM (Shanghai Metals Market) revisions to lithium carbonate inventory scope and sample coverage, which created a large weekly inventory spike, not by a material deterioration in industry fundamentals. It expects a September pickup in lithium-battery production to deliver substantial incremental demand while overseas supply additions lag, likely widening the supply deficit. Single-week inventory noise is unlikely to change the industry picture; CITIC views prices as clearly oversold and expects them to stabilise and rebound to 150,000-200,000 yuan/ton, supporting a recovery in lithium-sector stocks.