HK Stock Market Move | Lithium mining stocks rose in the morning session, supported by demand during the peak season as destocking continues. Institutions expect the supply gap for lithium carbonate to gradually widen.

Lithium stocks rose in morning trading. As of the time of writing, Ganfeng Lithium Group (01772) was up 3.76%, trading at HKD 39.2; Tianqi Lithium Corporation (09696) rose 3.53%, trading at HKD 35.24. On the news front, lithium carbonate futures for the main contract reached over RMB 140,000 per ton during the session, peaking at RMB 141,300. In terms of demand, downstream production in August is expected to rise by more than 7% month-on-month, with the peak season approaching, which is likely to further release demand. De-stocking has become a definitive trend. China Securities Co., Ltd. believes that with the arrival of the demand peak season in the second half of the year, the supply gap in lithium carbonate is expected to gradually widen, reaching a peak in Q4. If the industry chain prepares stock in advance, the price peak for the year may occur between late Q3 and early Q4. Demand is expected to remain robust through 2027, and while lithium carbonate supply will gradually increase, it is unlikely to be in surplus for the year.