The two leading lithium mining giants saw their share prices decline. As of the time of writing, Ganfeng Lithium Group Co., Ltd. (01772) fell by 4.19% to HK$64, while Tianqi Lithium Corporation (09696) dropped 3.5% to HK$55.1. On the news front, on January 16th, lithium carbonate futures hit the limit-down during the session, breaking below the key level of 150,000 yuan per tonne. Huatai Futures believes that due to recent consecutive regulatory measures introduced by the Guangzhou Futures Exchange, coupled with prices already being at a two-year high, lithium carbonate prices have shown a continuous corrective trend. The institution pointed out that there is currently significant divergence between bullish and bearish sentiments; downstream energy storage demand remains robust, leading to some inventory drawdown this week. However, the pass-through of lithium carbonate prices to the battery cell end is poor, and with current prices still at elevated levels within a two-year context, prices are expected to exhibit wide fluctuations and carry further correction risks. Subsequent attention should be paid to whether overall downstream consumption can drive the transmission of value along the lithium carbonate chain.
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