Lithium Carbonate Prices May Rise as Demand-Driven Supply Deficit Extends in August

SHANGHAI, Aug 11 (SMM) - Lithium carbonate supply deficit recorded 1,361 mt in July compared with a supply surplus in June. Domestic lithium carbonate output stood at 30,319 mt in July, down 4% MoM. A few manufacturers kicked off their mid-year maintenance in July, pulling down the overall operating rates; while some reduced the production amid tight supply of ore. As such, the supply tightened as a whole. The overall supply fell minimally although the some new capacities were ramping up the production and the output of brine lake projects was also at its peak level. The demand side, on the other hand, was on the rise with the release of LFP capacity. Looking into August, the supply is expected to climb after some manufacturers finish their maintenance, coupled with the additional output from some new capacities. The supply deficit is expected to extend into August with a void of 2,578 mt with constantly rising demand.