HK Stock Market Move | Lithium battery stocks collectively decline, lithium carbonate prices continue to rise recently, Daiwa Securities claims there is limited upward space for lithium prices next year.

The collective decline of lithium stocks, as of the time of this report, CALB (03931) fell by 6.66% to 31.1 Hong Kong dollars; Ganfeng Lithium Group (01772) fell by 5.75% to 59.05 Hong Kong dollars; Tianqi Lithium Corporation (09696) fell by 5% to 54.15 Hong Kong dollars; Contemporary Amperex Technology (03750) fell by 2.47% to 513 Hong Kong dollars. In terms of news, since mid-October, the price of lithium carbonate has been steadily rising, with a cumulative increase of nearly 30%. On November 18, the main contract for lithium carbonate on the Guangqi exchange rose by more than 4% before falling back. Yang Fei, an analyst at CITIC Futures, stated that he expects lithium carbonate demand to remain strong from late November to December, and it is necessary to closely monitor the demand performance in the first quarter of next year. Daiwa Securities released a research report stating that they are still conservatively optimistic about the upward space for lithium prices next year. The bank predicts that lithium prices next year will remain in the range of 75,000 to 90,000 yuan per ton, with limited room for upward movement from the current level of 85,000 yuan per ton. They believe that Chinese lithium prices will remain soft in the fourth quarter of this year and the first quarter of next year, mainly due to weak demand during the Lunar New Year and the global electric vehicle market entering a slow season.