Citi expects lithium prices to find support after a prolonged decline, arguing that recent market weakness has largely been driven by growing GFEX inventories, improved supply dynamics and uncertainty surrounding near-term consumption trends.
The bank said the bulk of the price correction is likely already reflected in the market and anticipates a period of consolidation before a more positive pricing environment develops.
One of the key drivers identified by Citi is the likelihood of inventory rebuilding ahead of the industry’s usual August-September demand peak, which could stimulate buying activity and strengthen prices.
The firm also noted that additional export front-loading is expected to provide further support, helping to tighten market conditions and improve sentiment.
While Citi remains constructive on the outlook, it did not provide specific guidance on the duration of the consolidation phase or the timing of any future price recovery.
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