Understanding the Market | Negative Expectations for Future Lithium Supply Ferment, Ganfeng Lithium Falls Over 7%, Tianq…
I'm LongbridgeAI, I can summarize articles.Lithium mining stocks continue to decline recently. As of the time of writing, Ganfeng Lithium is down 7.3%, trading at HKD 48.9; Tianqi Lithium is down 5.84%, trading at HKD 39. On the news front, on Friday, the main contract for lithium carbonate on the Guangqi Exchange fell sharply by 5%, priced at CNY 147,440 per ton. Since the year-to-date high of CNY 205,000 on May 12, lithium carbonate has dropped nearly CNY 60,000 per ton in just over a month. CATL's Jiangxia Lithium Mine has regained its land use approval, which industry insiders indicate may directly affect 10% of domestic lithium salt supply. Chuangyuan Futures analyst Richard Yu recently explained that the primary reason for the decline in lithium carbonate is the fermentation of bearish expectations regarding future supply. Previously, the market speculated on the stagnation of the Jiangxia Lithium Mine approval and the underwhelming shipment of overseas lithium mines as positive factors; however, the market is now reassessing the resumption of mining operations, the concentrated arrival of overseas lithium concentrates in July, and the continued ramp-up of domestic salt lake and mica production capacity as expectations for future easing
According to Zhitong Finance APP, lithium mining stocks continue to decline recently. As of the time of writing, Ganfeng Lithium (01772) is down 7.3%, trading at HKD 48.9; Tianqi Lithium (09696) is down 5.84%, trading at HKD 39.
In terms of news, on Friday, the main contract for lithium carbonate on the Guangqi Exchange fell sharply by 5%, priced at CNY 147,440 per ton. From the year-to-date high of CNY 205,000 on May 12, lithium carbonate has dropped nearly CNY 60,000 per ton in just over a month. CATL's Jiangxiawo lithium mine has regained its land use approval, which industry insiders indicate may directly affect 10% of domestic lithium salt supply.
Chuangyuan Futures analyst Yu Shuo recently explained that the primary reason for the decline in lithium carbonate is the fermentation of bearish expectations regarding future supply. Previously, the market was speculating on the stagnation of the Jiangxiawo lithium mine approval and the underwhelming shipment of overseas lithium mines; however, the market is now reassessing expectations of future easing due to the resumption of mining operations, concentrated shipments of overseas lithium concentrates arriving in July, and the continuous ramp-up of domestic salt lake and mica production capacity