[hot stocks] Lithium mining stocks fluctuated higher in the afternoon, Tibet Mining and other stocks rose by the daily limit of more than 9% of Yongxing materials.

In the latest news on May 6, lithium mining concept stocks fluctuated higher in the afternoon. By the close, Tibet Everest, Sichuan Power, Jinchen shares, Tibet Mining, Huafeng shares, and Jiangte Motor rose by the limit. Koda once touched the limit board, but finally failed to hold on and closed at 14.25 yuan per share with an increase of more than 7.9 percent. Yongxing Materials, Tibet City Investment, Yan'an Bikang, Zhengye Science and Technology, Jiuwo Hi-Tech and Shengxin Lithium Energy have all seen an increase of more than 6%.

Previously, CICC had predicted that the current lithium battery industry chain is in a period of changing from being king in the middle reaches of smelting to being king in the upper reaches of lithium mines, and some smelters are underemployed due to lack of ore. In the past month, the increase in industrial and battery-grade lithium carbonate has been very limited, and the price of lithium ore has soared by 30%. It is expected that the rise in lithium prices in the next six months is still mainly due to the rise in lithium mines.

On the news, CME Chicago Futures Exchange launched the world's first lithium futures contract on May 3, with the first transaction price at $14.25 / kg, at a small premium to the spot price. It is reported that the target of the contract is lithium hydroxide delivered to China, South Korea and Japan.

In response, Tianfeng Securities commented that the launch of lithium hydroxide futures strongly proves that lithium metal has completed the transformation from small metal to big metal for two reasons:

The main results are as follows: 1) the market scale of lithium salt is gradually expanding. Driven by the new energy vehicle and energy storage market, the global demand for lithium has increased from 204000 tons in 2016 to 317000 tons in 2020. Based on the average price of lithium carbonate of 103600 yuan per ton in the past five years, the global lithium market has reached 32.8 billion yuan. Yabao predicts that the global lithium demand is expected to exceed 1.14 million tons in 2025, and the market size of LCE, is expected to exceed 118.1 billion yuan, realizing the transformation from small metals to big metals.

2) the trading frequency of lithium salt increased significantly. The number of market traders directly determines the trading frequency of the market. In the small metal market stage, there are relatively few traders, the trading price is opaque, and the low trading frequency is difficult to support a continuous market; and the emergence of lithium futures is the most direct signal that both sides of the market are enough to support high-frequency trading. it is also a milestone in the gradual growth of lithium from a small metal to a big metal.

East Securities also said that lithium hydroxide futures are of great significance to the pricing of the lithium industry, and the listing of lithium futures or weakening the pricing power of leading suppliers will significantly improve the price transparency of the lithium salt market in the future, and the pricing of the global lithium salt market will be more fair.

According to the historical price of SMM, in 2021, against the background of the increasingly hot field of new energy vehicles, the average price of battery-grade lithium carbonate has risen from a low of 39750 yuan / ton last year to 89000 yuan / ton today, while battery-grade lithium hydroxide has also risen gratifyingly, from a low of 48000 yuan / ton to 82500 yuan / ton today, an increase of 71.9 percent.

"Click to see more historical prices of SMM Metals.

SMM predicts that, taking into account lithium hydroxide, pre-festival smelters are temporarily out of stock, transactions are relatively small, prices are relatively stable, and the current domestic mainstream high-nickel material factories increase the purchase volume of high-quality battery-grade lithium hydroxide, superimposed overseas battery factories continue to increase orders for high-nickel materials, some supporting models will be released by the end of the year, high-nickel factories will obviously expand production and release production capacity, and the purchase volume of some manufacturers has doubled. The price of lithium hydroxide may rise significantly after the festival. "View details

As for upstream lithium concentrate, Everbright Securities said that the tight supply of upstream lithium concentrate will remain normal, and industry leading enterprises have also distributed high-quality upstream resources one after another, and Orocobre announced that it will absorb and merge 100% of GalaxyResources to further obtain high-quality resources mines. Thus it can be seen that enterprises with low external dependence and high self-sufficiency rate of lithium resources will continue to benefit. It is recommended to pay attention to Tianqi lithium industry, Rongjie shares, Yongxing materials, Koda manufacturing, Ganfeng lithium industry.