Lithium Slump Has Room to Run as Bearish Bets Mount in Guangzhou

(Bloomberg) — The swift and brutal decline in lithium prices may still have room to run as bearish bets mount on the Chinese futures market that trades the battery metal.

Prices on the Guangzhou Futures Exchange have more than halved since the bourse debuted lithium trading in July as supply overwhelms demand. The market is now approaching its first contract expiry in January, and the number of trades that need to be settled via the physical delivery of the metal has exploded higher.