CITIC SEC: Overseas lithium resource clearance accelerates, expectations for bottoming out of lithium prices intensify.

CITIC SEC released a research report stating that the lithium price rebounded in the second quarter of 2024, driving the overseas lithium supply chain to improve. South American salt lake lithium extraction companies saw an increase in production in the second quarter of 2024 compared to the previous year, leading to a rebound in performance. In September, domestic lithium carbonate futures prices fell below 70,000 yuan/ton, causing a rapid depletion of global lithium resources supply, prompting the bank to lower its forecast for supply growth in 2024. As domestic lithium salt production declined in August, coupled with an increase in cathode material production, the bank expects a turning point in lithium salt inventory to occur soon, limiting the downward pressure on lithium prices. CITIC SEC expects that as lithium prices fall to a low, market expectations of the lithium industry bottoming out will increase, and the attention to lithium industry stocks is likely to rise. CITIC SEC's main points are as follows: - Overseas lithium production increased quarter-on-quarter in the second quarter of 2024. - In the second quarter of 2024, major lithium mining companies produced approximately 1.04 million tons of lithium concentrate overseas, up 13.2% quarter-on-quarter and 17.7% year-on-year. This was driven by a bottoming out of lithium prices in the second quarter, leading to smooth production expansion of low-cost lithium mines, but some high-cost mines ceased production or significantly reduced production, resulting in clear differentiation in the lithium mining business strategies. - Overseas lithium concentrate prices hit bottom in the second quarter of 2024, and in July, prices fell despite an increase in lithium supply. - In the second quarter of 2024, the prices of lithium concentrate for Greenbushes, Mt Marion, Mt Cattlin, Pilbara, Wodgina... (End of available text, please contact me if you need more)