Recently, the reporter visited a number of lithium salt manufacturers and found that some lithium salt factories reported that the supply of upstream lithium concentrate was tightening. Industry insiders interviewed believe that the fundamentals of supply and demand in the lithium carbonate market are normal, but the industry generally does not want “wide and sharp fluctuations” in prices, as this will affect long-term production expectations. Businesses are prepared for price fluctuations. Some heads of manufacturing companies confess that futures provide a practical tool for hedging. Companies can sell forward goods in advance at high prices, lock in profits, hedge against the risk of falling, and avoid disrupting production plans due to sharp price fluctuations.

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