Zhongjin: lithium mine prices may continue to face some downward pressure

Xinhua News Agency, May 16, China International Capital Corporation pointed out that lithium mine prices and lithium salt prices will further converge. Overseas customers will not buy lithium salt for a long time at a premium much higher than the Chinese market, and the profits of lithium smelters will eventually return to a reasonable range. If the rebound in domestic lithium salt prices is not strong enough to completely reverse the above upside-down situation, lithium mine prices may continue to face some downward pressure. Although some lithium mining enterprises intend to adopt volume-for-price strategy, considering that the recovery of downstream demand is relatively mild, the digestion of industrial chain inventory still takes some time, and the supply-side release is still relatively sufficient, it is considered that the possibility of a short-term rebound in lithium prices to cover the current high cost of lithium mines is not high, and the price-up behavior of lithium mining manufacturers may be difficult to maintain in the long run.