Shouchuang Futures: Market sentiment cools down, LC2605 contract hit the limit down in early trading.

In the early trading session today, the long positions closed to take profit and exited the market, causing the main contract price of lithium carbonate to drop sharply to around 150,000 yuan per ton, touching the limit down at one point. On the cost side, overseas lithium ore prices fluctuate with the price of lithium carbonate. On the supply side, the ban on lithium ore exports in Zimbabwe in Africa has raised concerns about supply, delays in the expected resumption of production at the Jiangxiaowu lithium mine, and the significant reduction in monthly production expected in February due to the Chinese New Year. Downstream demand was strong before the Chinese New Year, and after the holiday, the demand for energy storage increased, leading to a positive outlook for lithium iron phosphate production. In terms of news, according to Cui Dongshu, Secretary General of the China Passenger Car Association, global car sales are expected to reach 96.89 million units by 2025, with new energy car sales exceeding 22.89 million units, accounting for nearly a quarter of the total. In 2026, the global automotive market started off steadily, with total car sales in January reaching 7.18 million units, including 1.42 million new energy vehicles, with a penetration rate of 19.7%, continuing the strong growth trend in the new energy market. On the inventory side, as of January, domestic lithium salt factory inventories were around 29,800 tons, an increase of 5,900 tons from the previous month, a 24.69% increase month-on-month and an 8.01% increase year-on-year. With weak supply and strong demand fundamentals and low inventory levels, the bottom of the lithium price is supported. The news about Zimbabwean lithium mines has not yet been digested, so it is recommended to be cautious about shorting and wait for opportunities to buy on dips.