HK Stock Market Move | Global lithium supply accelerates clearing, with Ganfeng Lithium Group (01772) and Tianqi Lithium Corporation (09696) both rising more than 8%.

In the early trading session, lithium stocks rose. As of the time of publication, Ganfeng Lithium Group (01772) was up 7.69% at HK$18.48, and Tianqi Lithium Corporation (09696) rose 6.57% to HK$21.9. On the news front, it was reported on September 11th that the Yichun lithium mine under Contemporary Amperex Technology has halted production. On the same day, Jiling Lithium announced that its mines and ore dressing plants will undergo maintenance shutdown. Hengli Futures believes that the reduction in production from the mines to the lithium salt plants will take some time, coupled with the consumption of existing inventories, it will not immediately affect the spot market. CITIC SEC previously pointed out that in September, the domestic lithium carbonate futures price fell below 70,000 yuan/ton, leading to an accelerated clearance of global lithium resource supply, prompting the bank to lower its forecast for incremental supply in 2024. With the decline in domestic lithium salt production in August, coupled with the increase in cathode material production, it is expected that the turning point of lithium salt inventory will soon arrive, limiting the downward space for lithium prices. CITIC SEC predicts that as lithium prices fall to a low point, the market's expectation of the bottoming out of the lithium industry will increase, and the attention on lithium industry stocks is expected to heat up.