Changes in Hong Kong stocks | Lithium battery concept stocks are falling again, supply-side new production capacity is being released, and expectations of strong market demand for the industry have been shattered

The Zhitong Finance App learned that lithium battery concept stocks declined again. As of press release, Ningde Times (03750) fell 6.82% to HK$594; Tianqi Lithium (09696) fell 4.15% to HK$33.76; China Airlines (03931) fell 3.17% to HK$21.4; Ganfeng Lithium (01772) fell 3.16% to HK$41.72; Longpan Technology (02465) fell 3.08% to HK$10.06.

According to the news, recently, according to market media reports, the largest lithium ore processing plant in West Africa has officially been put into operation in the country's Nasarawa state. Local media reports say the corresponding annual production capacity is 3 million tons, which is equivalent to about 30,000 tons of lithium carbonate equivalent. Industry insiders analyzed that Ningde Era Jianxiawo obtained a production safety license and put into operation the West African lithium mine, and additional production capacity was released centrally on the supply side, breaking expectations of a “tight balance.” Furthermore, the slowdown in demand-side NEV production and sales growth and the removal of inventories in the industrial chain have formed a pattern of “weak supply and demand growth”. Lithium is a cyclically growing variety, and the market is speeding up industry clearance through price pullbacks, forcing the withdrawal of high-cost production capacity and saving energy for the next cycle.

An analyst at Qianhai Open Source Fund said in an interview that the current relationship between lithium carbonate supply and demand has changed. Previously, market expectations for strong demand were broken, leading to a sharp drop in lithium carbonate futures prices, which directly triggered a sharp drop in the lithium ore sector index. This round of sector adjustments is mainly related to short-term futures price fluctuations.