Investing.com — Australian lithium stocks fell on Monday, with smaller miners leading losses, as investors weighed a weaker outlook for battery demand and expectations of improving supply following a reduction in lithium price forecasts by Citigroup.
Argosy Minerals fell 5.2%, the biggest decline among key stocks in the sector, while Core Lithium dropped 4.8%. Global Lithium Resources lost 3.8%, while Wildcat Resources and Galan Lithium each declined 2.3%.
Liontown fell 2.4%, after touching an intraday low of A$0.575, matching its 52-week low. PLS Group slipped 1%, having also touched its 52-week low of A$2.50.
The declines followed a report by Bloomberg on Monday that Citi had lowered its lithium price forecasts for the next two years, citing slower battery demand growth, trade uncertainty and broader macroeconomic headwinds.
The bank cut its three-month lithium carbonate price target to $12,000 a tonne from $20,000, its hydroxide forecast to $12,000 from $17,000, and its spodumene forecast to $1,200 from $2,000, according to Bloomberg. It also reduced its estimates for all three materials through the end of 2028.
Citi warned that consumers could delay purchases and maintain lean inventories as supply improves in 2027 and uncertainty over demand remains elevated.
Sentiment and investor positioning are likely to remain dominant near-term price drivers, leaving risks skewed to the downside, Bloomberg reported, citing the bank’s research note.
The most-active lithium carbonate contract on the Guangzhou Futures Exchange rose 1.2% to 91,160 yuan a tonne in the morning session, but remained more than 40% below its end-August level, Bloomberg said.
Demand concerns have also been reinforced by proposed limits on Chinese hybrid-vehicle exports to the European Union and the phase-out of some tax incentives in China.
Meanwhile, environmental approval for CATL’s Jianxiawo mine in China’s Jiangxi province, which was shut last August, has added to uncertainty over future supply.
Original Article
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