Shares of lithium miners climbed in early trading on Wednesday, with Tianqi Lithium Corporation (HK: 09696) jumping 9.19% to HK$36.84 and Ganfeng Lithium Group Co., Ltd. (HK: 01772) rising 8.94% to HK$40.72.

The rally was fueled by a sharp surge in the lithium carbonate futures market, as the main contract gained nearly 4% to hit a high of 158,520 yuan per tonne. Since the start of August, lithium carbonate prices have accumulated gains of more than 15%.

According to Xinda Futures, inventory data released by the nonferrous metals network yesterday showed a weekly drawdown of approximately 7,500 tonnes, which briefly pushed futures prices to 154,000 yuan. The two institutions' data released over the past two days, while slightly different, indicate a similar magnitude of inventory reduction, confirming that overall stockpiles continue to decline at a rapid pace.

Huatai Futures noted that the current supply of lithium ore raw materials remains in a tight pattern, providing support for lithium carbonate costs. Trader inventories are at low levels, and recent purchasing enthusiasm has shown signs of recovery. Downstream material producers, relying on long-term contracts and customer-supplied materials to secure supply, are mainly restocking based on immediate needs.

On the demand side, downstream overall operating rates remain high, with August order production schedules maintaining strong month-on-month momentum and spot prices strengthening. Leading battery manufacturers are expected to see significant production growth by 2027, and the correction of overly pessimistic long-term expectations, combined with the possibility of a strong seasonal rebound, may further bolster sentiment in the market.