Home World News Australian lithium mining shares surged on the 19th amid rumors that the Chinese company would close its mines to boost incentives

Australian lithium mining shares surged on the 19th amid rumors that the Chinese company would close its mines to boost incentives

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Australian lithium mining shares surged on the 19th amid rumors that the Chinese company would close its mines to boost incentives

AustraliaLithium mining stocks rose sharply on the 19th as it was reported that Chinese battery maker CATL closed its Jianxiawo mining field in China, which producesElectric CarMaterials used in batteries.

Reuters reported that speculation about the closure of CATL mines boosted Australian resources shares. The share price of Pilbara Minerals, Australia’s largest pure lithium mining company, once rose by 4.9%, and the share price of Liontown Resources once rose by 7.7%. In the last six months, the prices of these two companies have fallen by about 25% and 50% respectively.

Ganxiawo produces lepidolite, and the cost of lithium produced from it is relatively high. CATL did not immediately respond to a Reuters request for comment.

Investment bank Barrenjoy said in comments: “CATL is clearly not willing to continue producing lithium carbonate at a price below RMB 95,000 (US$13,000) per tonne.”

Barrenjoey pointed out that the mine’s output is equivalent to 3% of global supply, and the suspension of production would shift the market from a surplus of 1% to a deficit of 2% (about 20,000 tonnes) in 2024.

On the 19th, the share prices of Australian mining developers also rose sharply, Patriot Battery Metals rose 6%; Wildcat Resources rose 8% during the session, and Sayona Mining rose 18%.

UBS analyst Lachlan Shaw said it is not unusual for Chinese factories to shut down or slow production during the Spring Festival holidays.

Lachlan Shaw said: “If it is confirmed that Jianxiawo has stopped production, and the suspension is for economic reasons and not a temporary suspension due to the Spring Festival, then this will be a necessary and important step as we return to the market.” Are expecting.” to balance.”

“The key question is why the fast-growing world’s largest battery maker would close its own fully integrated lithium mine when lithium prices are approaching what UBS considers the break-even level “

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