Tesla’s unsatisfactory quarterly report, which largely fell short of expectations, shook the Korean stock market on Thursday. Stocks related to the secondary battery sector experienced significant declines.
According to the Korea Exchange (KRX), the stock price of EcoPro Materials, a subsidiary of EcoPro specializing in secondary batteries, fell by 9.19 percent, reaching 157,100 won ($117.50). EcoPro Materials specializes in the production of basic materials for lithium-ion cells.
Other units of EcoPro also recorded large declines during the session. EcoPro BM shares ended the day with a 5.02 percent drop, with a value of 490,500 won, indicating a 3.06 percent decrease. This is the lowest price since last April, half of last year’s peak.
Along with Thursday’s declines, the total market capitalization of EcoPro’s subsidiary companies, including EcoPro Materials and EcoPro BM, decreased by approximately 50 trillion won compared to the peak reached in the summer of 2023.
Other major companies in the secondary battery sector also experienced declines. POSCO Future M shares, which focus on the production of battery materials and advanced chemicals, ended the day with a 3.83 percent drop.
Shares of LG Energy Solution fell by 3.29 percent, and Samsung SDI ended the day with a 1.84 percent drop. L&F, a producer of active materials for lithium-ion cells, recorded an 11.02 percent decline during the session.
Analysts predict that the bearish trend in the Korean secondary battery market may persist for some time as demand for global electric vehicles remains weak, and the recovery of demand is still uncertain.
“Korean companies producing cathode materials are experiencing a decrease in their export volume. In the last quarter alone, exports fell by 27 percent compared to the previous year. Compared to the average export volume of 74,000 tons in the first three quarters, this decline is more severe, reaching 35 percent,” said Han Byung-hwa, an energy analyst at Eugene Investment & Securities.
“The slump in Korean exports of cathode materials was initially attributed to a decline in lithium prices, but now it is evident that a more significant factor is the slowdown in the growth of electric vehicles.”
FAQ:
1. What caused the shockwaves in the Korean stock market?
– Tesla’s unsatisfactory quarterly report caused shockwaves in the Korean stock market.
2. Which stocks related to the secondary battery sector experienced declines?
– EcoPro Materials and EcoPro BM stocks experienced significant declines.
3. What are the specializations of EcoPro Materials?
– EcoPro Materials specializes in the production of basic materials for lithium-ion cells.
4. What value did EcoPro Materials stocks reach?
– The stock price of EcoPro Materials reached 157,100 won ($117.50).
5. Which other major companies in the secondary battery sector experienced declines?
– POSCO Future M, LG Energy Solution, Samsung SDI, and L&F experienced declines.
6. What value did EcoPro BM stocks reach?
– The stock price of EcoPro BM was 490,500 won.
7. What is the cause of the decline in exports of cathode materials?
– The decline in exports of cathode materials is mainly due to the slowdown in the growth of electric vehicles.
Definitions:
1. Stock price – the value of a stock on the stock market.
2. Secondary battery sector – the industry involved in the production of batteries for energy storage.
3. Basic materials for lithium-ion cells – raw materials used in the production of lithium-ion batteries.
4. Market capitalization – the market value of companies on the stock market.
5. Cathode materials – materials used in the production of cathodes in batteries.
Suggested links:
– EcoPro Materials homepage
– POSCO Future M homepage
– LG Energy Solution homepage
– Samsung SDI homepage
– L&F homepage
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