Lithium miners report big nine-month gains, but third-quarter profit falls
In short
Chinese lithium miners have reported nine-month profits several times to dozens of times higher than a year earlier, but single-quarter net profit generally fell from the previous quarter, Shanghai Securities News reported. Caixin said Ganfeng Lithium (赣锋锂业) posted a nine-month net profit up nearly 200-fold, with its third-quarter profit falling sharply.
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Chinese lithium miners' third-quarter reports and nine-month earnings previews have been arriving since mid-to-late October, Shanghai Securities News reported in a piece carried on 23 October by CLS, 36Kr and Jiemian. It said nine-month results were several times to dozens of times higher than a year earlier. It noted that this high growth did not continue into the third quarter, with single-quarter net profit generally down from the previous quarter, a sign that profit growth is slowing. [ 2 , 3 , 4 ]
The report tied the change to the carbonate lithium price, which has kept falling since September. It said the market's trading logic has shifted into a contest between industry reality and forward expectations: futures are pricing in future oversupply, while spot shipments remain steady. It described this gap between expectation and reality as the central point of disagreement in the lithium market. [ 2 , 3 , 4 ]
On 22 October, Caixin reported on Ganfeng Lithium (赣锋锂业). Its headline said the company's net profit for the first three quarters rose nearly 200-fold, while its single-quarter profit fell by about 70%. Caixin's summary said higher lithium salt prices this year and higher lithium battery sales lifted revenue and profit over the nine months. It said the core reason for the third-quarter slowdown from the previous quarter was that profit in the lithium salt business was squeezed by costs. [ 1 ]
Why it matters
The reports point to slowing profit growth at lithium miners after a strong first nine months. Carbonate lithium prices have fallen since September, and the outlets describe a gap between market expectations of future oversupply and steady spot shipments.
Key facts
- Lithium miners' nine-month results rose several-fold to dozens-fold year on year, according to a Shanghai Securities News report carried by CLS, 36Kr and Jiemian. [ 2 , 3 , 4 ]
- Single-quarter net profit at lithium miners generally fell from the previous quarter, the report said. [ 2 , 3 , 4 ]
- Carbonate lithium prices have kept falling since September. [ 2 , 3 , 4 ]
- Caixin's headline said Ganfeng Lithium's net profit for the first three quarters rose nearly 200-fold and that its single-quarter profit fell by about 70%. [ 1 ]
- Caixin said higher lithium salt prices and higher lithium battery sales lifted Ganfeng's nine-month revenue and profit. [ 1 ]
- Caixin said the core reason for the third-quarter slowdown was that lithium salt profitability was squeezed by costs. [ 1 ]
Confirmed by several sources
- Nothing is confirmed by two independent outlets yet.
Still unclear
- The size and cause of Ganfeng Lithium's third-quarter profit drop. Only Caixin's headline and summary cover Ganfeng, and the summary gives no figures beyond the headline.
- Whether the third-quarter decline applies to every lithium miner. The Shanghai Securities News report says single-quarter profit fell 'generally' and names no specific companies in the available text.
- Since mid-to-late October, lithium miners' third-quarter reports and nine-month earnings previews have shown nine-month results several-fold to dozens-fold higher than a year earlier, while single-quarter net profit generally declined from the previous quarter. Reported by a single source so far
- Carbonate lithium prices have fallen continuously since September; futures are pricing in future oversupply while spot shipments remain steady. Reported by a single source so far