According to the Zhitong Financial APP, lithium industry stocks fell today. As of press time, ganfenglithium (01772) fell 3.21% to HKD 17.48, and tianqi lithium corporation (09696) fell 3.47% to HKD 20.85.

Guotou Anxin Futures pointed out that currently the spot price of lithium carbonate is significantly lower than the import cost of ore, which puts great pressure on the smelter end and may result in production cuts and maintenance inspections. Haitong Securities previously stated that low lithium prices are squeezing smelting enterprises, and after lithium prices fall below RMB 0.1 million, the impact on the supply side begins to gradually emerge.

According to the cost guidelines of major lithium mine manufacturers in Australia, the cost of most Australian lithium mines is concentrated in the range of $500-$650 USD, and the highest cost of battery-grade lithium carbonate is 0.068 million yuan/ton. Before the lithium concentrate supply-demand cycle comes to an end, the supply of lithium concentrate will continue to increase, especially with the new supply of African lithium mines this year. In a situation of oversupply, the price of lithium mines is expected to continue to decrease.