HK Stock Market Move | Lithium stocks continue to decline, with lithium carbonate once again falling below the 80,000 mark. The long-term industry oversupply situation has not yet been reversed.

The share price of lithium companies continues to decline. As of the time of writing, Tianqi Lithium Corporation (09696) fell by 4.29% to 26.8 Hong Kong dollars, while Ganfeng Lithium Group (01772) fell by 2.55% to 22.9 Hong Kong dollars. On the news front, lithium carbonate had previously rebounded significantly under multiple positive factors and funding, but the overheated sentiment subsided, causing lithium prices to fall. Following a decline on Thursday, the main contract for lithium carbonate fell by more than 7% today, once again falling below the 80,000 level. Huatai Futures believes that the sharp drop in the market is greatly affected by changes in positions, possibly due to profit-taking by bulls in the previous period. In the medium to long term, the long-term surplus situation of lithium carbonate has not been reversed. For speculators, the current short-term market and fundamentals appear to diverge from the medium to long-term logic, so it is advisable to watch and wait. Guotai Futures also believes that the current trend of lithium carbonate is driven by sentiment and funding. After a significant rise in prices in the previous period, the spot market did not heat up accordingly, and downstream willingness to accept high-priced goods is poor.