Changes in Hong Kong stocks | Lithium prices may continue to fluctuate next year Ganfeng Lithium (01772) will drop more than 6% Tianqi Lithium (09696) will drop nearly 4%

The Zhitong Finance App learned that lithium stocks declined in the afternoon. As of press release, Ganfeng Lithium (01772) fell 5.95% to HK$23.7; Tianqi Lithium (09696) fell 3.96% to HK$26.7.

According to the news, Ganfeng Lithium said in an agency survey on November 25 that due to recent changes in market supply and demand, lithium carbonate prices have fluctuated greatly. The company is still optimistic about medium- to long-term lithium industry demand, and the company expects lithium carbonate prices to gradually return to a reasonable range in the future. At this stage, lithium prices are still at a low point, and may remain volatile next year, but recently several mines in Australia have gradually cut production or stopped production due to lithium prices hitting cost pressure. The company expects the supply and demand relationship to improve next year, so from a fundamental perspective, it is very difficult for lithium prices to continue to decline.

TSE Futures pointed out that the short-term market's focus is still on demand. Weekly data shows that the table needs to decline sequentially for two consecutive weeks, nearing the end of the month, and we need to pay attention to the pace of downstream production and procurement in early December. At the same time, the end of the year coincides with the upstream and downstream annual long-term negotiations period, or may cause additional disturbances to the short-term market. The current increase in supply brought about by the rebound in lithium prices has gradually been realized, but the inflection point of the market may still depend more on the demand side.