Hong Kong-listed lithium mining stocks strengthened this morning. As of press time, Ganfeng Lithium Group Co.,Ltd. (01772) rose 9.1% to HK$26.3, while Tianqi Lithium Corporation (09696) gained 5.8% to HK$25.36.
On the news front, on the morning of November 5, the main lithium carbonate futures contract surged more than 5% to around 93,000 yuan per tonne, staging a strong reversal from the phase low set during yesterday's intraday trading.
The results of the U.S. midterm elections are out, with the Democratic Party securing a clear advantage in Congress. For the new energy sector, this means policy expectations that had been suppressed over the past two years are being released all at once, lifting medium- to long-term demand expectations, and lithium carbonate stands to benefit.
Xinda Futures noted that the industry continues to see increased production alongside inventory drawdowns and a migration of stockpiles from upstream to downstream, reflecting strong demand. The current inventory structure is healthier than at the same time last year. However, expectations of upstream production resumption in the far month, along with pricing for a seasonal demand slowdown, are manifesting in a pattern of near-month strength and far-month weakness.
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