Guotai Junan reported that recently, lithium mines are in the supply and demand structure adjustment stage, the Australian mine's initiative to reduce production is accelerating this process, optimistic about the cost advantage and capital advantage of the enterprise to stand out in the future. In the long term, lithium is still in oversupply industry trend, some miners downward adjustment of 2024 production guidance in order to reduce supply pressure. In the short term, along with the lower reaches of the peak season row production enhancement superimposed on the inventory fall, the inflationary environment and scale effect for lithium prices to provide some support, there are short-term rebound opportunities. To long-term cycle turnover perspective, with the low lithium prices continue, capital expenditure slowdown, while downstream demand is still in the growth stage of sustained rapid growth. Lithium will usher in the next round of price uptrend after the upstream supply capacity is cleared.

Text source: Interface News