May 15 (Reuters) - Shanghai Steel Union released data showing that the price of battery-grade lithium carbonate fell 2,500 yuan today, with the average price quoted at 106,500 yuan per ton. How long the downturn in the cyclical industry is going to last is usually difficult to judge, but today there are already people who choose to buck the trend to increase their positions.

Unlike manufacturing, the nature of lithium carbonate is still mining. Similar to SaaS companies, mining investment needs a lot of capital investment in the early stage, without the actual cash inflow, the new production project in hand cash is relatively tight, companies want to smash the money to force competitors to know the hard way back. However, in the current industrial environment, due to the relative slowdown in downstream demand, the average price of Australian concentrates has fallen to 990 U.S. dollars / ton, and then settled in the M + 1 way, the actual price may be even lower, in this case, even Yabao need to consider its production costs, not to mention other manufacturers.

In the long term, the new energy industry still has more space, but the short term is very much a test of the participants' business strategies. China's lithium carbonate resources accounted for only 6% of the world, and is a scarce resource, Chinese enterprises out of the international search for low-cost lithium mine for the general trend. Therefore Ganfeng lithium said, the market price how, the enterprise still want normal production, but also brave bets continue to buy mines overseas - to ensure that the supply of raw materials is the top priority.

In Australia, miners have cut production, multinational giants to reduce capital expenditure in the context of this round of lithium mine clearance cycle has quietly opened, lithium carbonate prices are still hibernating at the bottom, but the reversal of the cycle may come earlier than expected.

For the current trough, Li Liangbin has long been expected, and now the deployment of the expansion of production, should also be part of the plan.

Ganfeng lithium is the world's third largest producer of lithium compounds, second only to Yabao and SQM, the logic of the investment comes from the win rate and the odds of the fight, lithium mining reverse layout focuses on the odds, the current lithium prices have reached the bottom of the range.

Against the trend of the position is not only the corporate level of the next cycle of full preparation and even active betting, but also the industrial level to ensure that the supply of lithium mines in the country's strategic guarantee.