HK Stock Market Move | Lithium carbonate fell 24% in September, with Ganfeng Lithium Group (01772) and Tianqi Lithium Corporation (09696) both dropping more than 3% intraday.

Lithium mining stocks extended their recent decline. As of press time, Ganfeng Lithium Group (01772) fell 3.37% to HK$29.8, while Tianqi Lithium Corporation (09696) dropped 2.79% to HK$27.88. On the news front, lithium carbonate futures continued to weaken in the week before the National Day holiday. On September 28, the main lithium carbonate futures contract fell below 120,000 yuan/tonne, hitting a new low for the year and down about 40% from this year's May high. On September 30, Shanghai Ganglian E-Commerce Holdings' battery-grade lithium carbonate price stood at 120,000 yuan/tonne, compared with a quote of 157,000 yuan/tonne on August 31, putting the September decline in lithium carbonate at 24%, the largest single-month drop since the second half of 2026. Tonghui Futures believes that with supply easing while demand expectations remain weak, lithium prices lack upward drivers in the short term. On the supply side, overseas mine increments continue to arrive at ports and ore prices are weakening, while domestic smelting capacity utilization remains stable. Although Brazil's Sigma production halt and Dazhong Mining's reserve increase news have somewhat disturbed market sentiment, the actual short-term supply contraction is limited, and expectations of looser long-term supply have instead deepened. On the demand side, cathode material prices continue to fall and terminal retail sales are down year-on-year. With pre-holiday stockpiling coming to an end, downstream purchasing has turned cautious, making it difficult to form effective support.