The Zhitong Finance App learned that lithium battery stocks had the highest decline. As of press release, Ganfeng Lithium (01772) fell 3.97% to HK$25.4; Tianneng Power (00819) fell 3.27% to HK$6.51; China Innovation Airlines (03931) fell 2.27% to HK$18.06; Tianqi Lithium (09696) fell 2.2% to HK$40; BYD Electronics (00285) fell 0.41% to HK$36.6.

According to the news, on November 27, the main contract for lithium carbonate fell below the 120,000 mark, at a low of 119,100 yuan/ton, and fell by more than 5% during the day, continuing to hit a new low since listing. Furthermore, as of November 23, the closing price of lithium carbonate futures was 124,100 yuan/ton, down 10.11% from week to week; according to SMM, the average market price of battery-grade/industrial grade lithium carbonate was 13.80/128 million yuan/ton, down 6.12%/8.08% from week to week.

Huatai Futures pointed out that due to the price decline cycle, battery manufacturers' product inventories were suppressed, and subsequent production schedules were reduced, and downstream cathode materials and battery production in the fourth quarter were mainly for terminal consumption in the first quarter. Both new energy vehicles and energy storage consumption in the first quarter were in a low season, so consumer-side support weakened. Competition for new energy vehicles is intense, and cost reduction and price pressure continues. Combined with long-term supply easing, pressure on the supply side is high, and competitive pressure on the industry is increasing.