HK Stock Market Move | Lithium carbonate prices rebounded strongly, breaking through 80,000 yuan per ton. Ganfeng Lithium Group (01772) rose nearly 8%, and Tianqi Lithium Corporation (09696) rose over 5%.

Lithium stocks continued to rise in early trading, as of the time of publication, Ganfeng Lithium Group (01772) was up 7.87% at HK $26.05, and Tianqi Lithium Corporation (09696) was up 5.24% at HK $30.15. On the news front, on November 11, lithium carbonate futures quickly rose, surpassing the 80,000 yuan/ton mark. By the end of the day, the main LC2501 contract closed at 80,950 yuan/ton, up 4.32%. At the same time, trading volume and open interest also significantly increased, with the lithium carbonate weighted index adding 60,300 lots intraday, hitting a record high. Guotai Junan Futures pointed out that the main reason for the current strong lithium prices is the valuation recovery driven by the recovery in demand. From the demand side, the new energy vehicle replacement policy combined with the end-of-year energy storage grid effect has boosted downstream demand. In November, the production of battery cells, cathode materials, and electrolytes all increased compared to the previous month, exceeding earlier expectations. On the supply side, lithium shipments from Australia fell in October, future supply is expected to tighten, and a supply-demand gap in the lithium carbonate market is expected in November. At the same time, the 2025 long-term contracts are about to be signed, upstream companies are more willing to hold prices, making it harder for downstream companies to sign contracts. Some downstream companies may turn to the spot market for early stocking, keeping spot prices relatively strong. Looking ahead, limited upside potential is expected.