HK Stock Market Move | Lithium stocks rise again, lithium carbonate futures break through 80,000 mark, market continues to pay attention to supply side disruptions.

The lithium sector was active again this morning, with Tianqi Lithium Corporation (09696) rising by over 6% at one point, and Ganfeng Lithium Group (01772) rising by nearly 3%. As of the time of writing, Tianqi Lithium Corporation is up 5.04% to 41.65 Hong Kong dollars, with a trading volume of 5.25 billion Hong Kong dollars; Ganfeng Lithium Group is up 1.95% to 31.4 Hong Kong dollars. On the news front, on July 25th, the main contract for lithium carbonate continued to surge by over 7%, breaking through 80,000 yuan/ton. Great Wall Futures pointed out that the market is currently paying close attention to whether the mining permit for the Ningde site will be renewed after it expires in early August. Galaxy Futures stated that the strong rise in lithium carbonate prices is partially due to the expectation that the anti-monopoly trend in the downstream market will spread to the upstream market, as well as bets on the suspension of production at mines in Jiangxi. Based on the logic that speculation drives prices, it is necessary to pay attention to the possibility of "expectation gaps". If mines are shut down without permits, prices may rise to the level before the restart of production at the Jiafen site at the beginning of the year; if the mining risk is alleviated, high prices will further exacerbate the overcapacity issue, and in the medium term, return to industrial reality, with prices possibly hitting new lows.