HK Stock Market Move | Lithium mining stocks fell today, with Ganfeng Lithium Group (01772) dropping more than 2%. The impact of mining rights cancellation is relatively limited.

Lithium mining stocks fell today, as of press time, Ganfeng Lithium Group (01772) dropped by 2.02% to 50.85 Hong Kong dollars; Tianqi Lithium Corporation (09696) fell by 0.77% to 48.96 Hong Kong dollars. On the news front, lithium carbonate futures contract 2605 rose and then fell today. It was reported recently that the Yichun Natural Resources Bureau announced the intention to cancel 27 mining licenses, including the Wuqiao Cishi Mine in Gao'an City, in accordance with relevant laws and regulations including the Mineral Resources Law of the People's Republic of China and the Measures for the Registration and Management of Mineral Resources Exploitation. According to analysis by XinDa Futures, in terms of actual impact, most of the mining licenses involved in this announcement, for kaolin and alumina mines, had already expired before 2024, and the related mines have stopped production, therefore the impact on the current supply and demand situation in the lithium carbonate market is relatively limited. Huabao Futures believes that in terms of market sentiment, the tight balance between supply and demand is compounded by recent disturbances such as overseas resource production/recovery news and domestic lithium mining capacity dynamics (the Lion's Ridge mining rights dispute, approval for the Velasto project), intensifying the game of funds. Considering the release of future production capacity and the main net short position structure, short-term price fluctuations may further amplify.