HK Stock Market Move | The main lithium carbonate contract has surpassed 158,000 yuan. Tianqi Lithium Corporation (09696) and Ganfeng Lithium Group (01772) both rose over 9%.

Lithium mining stocks rose in early trading. As of the time of writing, Tianqi Lithium Corporation (09696) was up 9.19%, trading at HKD 36.84; Ganfeng Lithium Group (01772) was up 8.94%, trading at HKD 40.72. In terms of news, this morning, the main contract for lithium carbonate surged nearly 4%, reaching a high of RMB 158,520 per ton. Since August, the price of lithium carbonate has risen more than 15%. Xinda Futures pointed out that the inventory data released by a metals website yesterday showed a weekly reduction of about 7,500 tons, which temporarily drove the price up to RMB 154,000. Analysis from two institutions over two days shows that although the reduction data differs slightly, the magnitude is similar, indicating that overall inventory is continuing to diminish rapidly. Huatai Futures believes that the current supply of lithium raw materials remains tight, providing support for the cost of lithium carbonate. Overall, traders' inventories are at a low level, and recent receiving activities have shown some improvement. Downstream material manufacturers are relying on long-term contracts and customer supply to ensure a certain level of supply, primarily focusing on replenishing stock to meet firm demand. On the demand side, downstream operating rates remain high, with August order production maintaining a high level of activity, resulting in strong spot markets. Leading battery manufacturers are expected to see significant growth in production by 2027, with future weak expectations being appropriately adjusted, potentially strengthening the rebound expectation for the peak season.