CITIC Securities: Off-peak season may not be slow, peak season may be expected. Lithium prices are expected to rise from a low level.

The report from CITIC Construction Investment Securities pointed out that due to the recent rapid decrease in lithium prices, upstream sales sentiments are becoming more cautious, with obvious price support, and some scattered quotations still remain above 160,000 yuan/ton; at the same time, downstream purchases are active at low prices, with procurement sentiments below 150,000 yuan/ton at material plants being more positive, but purchasing behavior remains cautious, mainly focusing on essential needs. On the supply side, lithium carbonate production is decreasing, with some lithium salt plants entering maintenance as planned, leading to a significant reduction in lithium spodumene production. In terms of demand, it is expected that production scheduling in July will continue to grow, with material plants operating at high rates, expecting a month-on-month growth of over 5%. It is also expected that production scheduling in August will continue to show positive growth compared to the previous month, with the off-season not being dull. Expectations for rush installations and exports in the year, with a promising peak season in the fourth quarter.