CITIC Construction Investment research says lithium has over-discounted
prospective loosening; weekly inventories continue to fall and prices are
oversold in the near term. Fundamentals remain strong for the year and supply
stays tight: Baichuan data show several lithium-salt plants have announced
maintenance, creating phased output cuts this month and next that should tighten
short-term supply; heavy snow in South American salt lakes may further hit Q3
production and shipments. Demand has not softened through the July–August
off-season—demand appears front‑loaded and downstream rigid procurement is
supporting prices. Maintenance-driven supply reductions plus robust demand are
continuing to draw inventories, underpinning a price floor and raising the odds
of stronger prices into September–October.
