Ganfeng Lithium's stock price plummeted 5.00% during intraday trading on Friday, extending recent losses for the lithium producer.

The sharp decline follows a recent rating downgrade by Goldman Sachs, which moved Ganfeng Lithium H-shares from "Neutral" to "Sell" and set a target price of 60 HKD, approximately 30% below recent trading levels. The investment bank forecasts that benchmark lithium carbonate prices will peak in the first half of the year, with a significant 20% to 22% supply surplus expected to emerge in the second half and into the following year.

These concerns over a looming lithium price downcycle are suppressing share price performance despite the company reporting strong first-quarter results. The broader specialty chemicals sector, particularly lithium peers, also traded lower, reinforcing sector-wide weakness driven by oversupply expectations.