On September 24, TIANQI LITHIUM fell 3.07% in regular trading to HK$29.64, with turnover of HK$27.66 million. The decline came amid a broad selloff in lithium stocks, with sector peer GANFENG LITHIUM also falling 3.51% on the same day.
The move was primarily driven by UBS cutting its 2027 China lithium price assumption by 40%, from RMB 200,000/ton to RMB 120,000/ton, while slashing TIANQI LITHIUM's net profit forecasts for the next two years by 55% and 67% respectively. UBS noted that all downgrades stemmed from price assumption changes rather than company fundamental deterioration.
Compounding the pressure, the domestic carbonate lithium futures market has declined over 20% since early September, with the main contract falling to as low as RMB 124,020/ton, largely erasing year-to-date gains. The counter-seasonal weakness during what is traditionally peak demand season has been attributed to inventory destocking concerns, battery maker production cut rumors, and rising expectations of a US Federal Reserve rate hike weighing on commodities broadly. UBS acknowledged that the market may have over-priced storage battery destocking risks while underestimating potential supply disruptions from Jiangxi anti-corruption investigations.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments