JP Morgan: Downgrades target price for Ganfeng Lithium Group (01772) and Tianqi Lithium Corporation (09696), expects lithium prices to only rebound in the short term.

JPMorgan Chase released a research report stating that they believe the current rise in lithium prices is similar to the situation last time, and they expect the upward trend to be short-lived. The bank maintains a "reduce" rating for Ganfeng Lithium Group (01772) and Tianqi Lithium Corporation (09696), with target prices lowered to HK$13.5 and HK$16, respectively, implying a downside of 20% to 24%. The report mentioned that the lithium futures price on the Guangzhou Futures Exchange rose by 6% to 8% to around RMB 78,000 per ton on September 11th, with speculation in the market that Contemporary Amperex Technology had halted production at its mines, causing lithium industry stocks to rise by 10% to 14%. The bank pointed out that similar speculation occurred in February this year, causing lithium prices to surge by about 30% in two weeks to RMB 120,000 per ton, but the upward trend was short-lived as fundamental factors remained stagnant and the industry began to hedge against high prices.