Group 1 - Lithium stocks continue to decline, with Tianqi Lithium (09696) down 4.25% at HKD 34.9 and Ganfeng Lithium (01772) down 4.21% at HKD 26.15 [1] - On July 31, lithium carbonate futures main contract fell over 6%, currently reported at CNY 68,300 per ton [1] - Southwest Futures indicates that the supply-demand balance in the lithium carbonate market remains unchanged, with supply still robust despite some major manufacturers undergoing maintenance, leading to a slight decrease in supply this week [1] Group 2 - Recent improvements in downstream consumption are noted, with July production increasing, primarily supported by energy storage demand [1] - However, there is a strong reluctance to purchase among downstream buyers due to high prices, coupled with ample inventory leading to a cautious market sentiment [1] - The overall supply-demand surplus situation has not been reversed, although there remains significant uncertainty regarding supply from mining sources [1]