According to the research report released by CITIC Construction Investment, a substantial portion of the new supply flooding the market has been effectively absorbed by the burgeoning demand. This dynamic has progressively brought to light previously concealed older inventories. Shanghai Metals Market (SMM) has refined its inventory tracking methodology by incorporating samples from traders and battery cell producers. Under this updated framework, the latest weekly inventory tallies 137,000 tonnes, marking a 0.8% decrease from the previous week; conversely, the inventory measured under the old system registers at 101,000 tonnes, showing a 1.2% week-on-week decline. As prices persist in their downward trajectory, the market's appetite for purchases has surged, accompanied by a notable uptick in restocking and inventory-building endeavors. This week, carbonate lithium production experienced a slight downturn owing to maintenance activities on spodumene production lines. Given the anticipated raw material scarcities, output is projected to further diminish in May and June. Meanwhile, downstream energy storage production continues to thrive at elevated levels, and the resurgence in power demand sets a lower bound for lithium prices, hinting that short-term lithium prices may stabilize and enter a phase of consolidation.