In a complex market environment, inventory levels act as a "barometer" for the industry, directly reflecting changes in the supply-demand pattern and serving as a key indicator for predicting price trends. To help industry participants better grasp market dynamics, the SMM New Energy Lithium Battery Database has developed the Inventory Cycle Index, which covers upstream, downstream, and other key links, providing the industry with a comprehensive tool for monitoring inventory dynamics!
I. Inventory Cycle Index: Calculation Method
The SMM Inventory Cycle Index employs standardized data processing methods, quantifying the absolute inventory values at various links in the industry chain (standardized based on the monthly demand for lithium carbonate) to convert raw inventory data into comparable indexed indicators. This index system can visually present the relative relationship between current inventory levels and market demand, providing industry participants with a scientific and objective reference for positioning inventory cycles.
II. Inventory Cycle Index: Significance of Use
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Lithium Chemicals Producers: Adjust production rhythms and sales strategies based on downstream inventory levels to avoid inventory buildup.
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Cathode Material/Battery Manufacturers: Grasp the rhythm of raw material procurement to reduce inventory costs and improve capital utilization efficiency.
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Traders: Capture price fluctuation opportunities brought about by inventory cycles to formulate swing trading strategies.
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Investment Institutions: Conduct in-depth analysis of the correlation between inventory cycles and stock prices to uncover investment opportunities.
III. Inventory Cycle Index: Release Schedule
Regular weekly updates (every Thursday) to promptly reflect market dynamics.
