[Edaily Reporter Shin Ha-yeon] The stock prices of #EcoPro and #EcoProBM, considered leading KOSDAQ secondary battery stocks, have plummeted by over 20% in the past month and are struggling to regain momentum. Although their stock prices saw a brief rebound at the beginning of the year and in May on expectations of a rebound in lithium prices, they have since given up those gains, pressured by foreign selling and short-selling.

According to MP Doctor on the 10th, based on the closing price that day, EcoPro fell by more than 31.68% over the past month (May 8–June 10). During the same period, EcoPro BM also recorded a decline in the 30% range. This far exceeds the KOSDAQ index’s decline (-20.60%) over the same period.

The sharp drop in stock prices has also significantly reduced the market capitalization of both companies. The combined market capitalization of EcoPro and EcoPro BM stands at 30.472 trillion won, meaning nearly 14 trillion won has evaporated compared to a month ago (44.28 trillion won). Since the 5th of this month, they have once again ceded the top spot to #Altogen.

In terms of supply and demand, the exodus of foreign investors is particularly notable. Foreign investors have sold a net 114 billion won worth of EcoPro BM and 56 billion won worth of EcoPro this month alone, increasing downward pressure on the stock prices. This represents the largest net selling volume among all KOSDAQ-listed stocks. During the same period, retail investors absorbed the selling pressure by net buying approximately 143 billion won worth of EcoPro BM and 72 billion won worth of EcoPro, but this was insufficient to stem the decline in share prices.

Short selling indicators are also weighing on the market. As of the previous day, the short selling transaction values for EcoPro BM and EcoPro stood at 224 billion won and 147 billion won, respectively, ranking first and second in the KOSDAQ market.

In terms of net short positions, EcoPro (983 billion won) and EcoPro BM (603 billion won) also ranked first and second, respectively. Net short positions represent the value of shares sold short by investors that have not yet been covered; a larger balance indicates that a significant volume of shares remains in the market betting on a decline in the stock price.

The sluggish performance of the EcoPro sister stocks is interpreted as a result of heightened investor expectations following the market’s prior pricing in of expectations for a recovery in the secondary battery sector. While expectations of a rebound across the secondary battery sector emerged earlier this year as lithium prices showed signs of recovery and concerns over slowing electric vehicle demand eased somewhat, there is a growing sense that simple expectations of a market recovery alone are insufficient to sustain the upward trend in stock prices. As volatile market conditions persist due to domestic and international stock market conditions, investors appear to be scrutinizing more closely whether improvements in profitability meet market expectations.

Another factor contributing to the dampened investor sentiment is that expectations for improved selling prices and profitability among cathode material manufacturers have somewhat diminished, as prices for lithium and nickel—key raw materials for batteries—have leveled off since mid-last month.

According to the Korea Resources Corporation, the price of lithium stood at $21.64 per kilogram on the 9th, up 125.65% year-on-year but down 3.69% from the previous month’s average. This figure is 11.28% lower than the year-to-date high of $24.39 recorded on May 12. Nickel prices on the LME also fell to $17,930 per ton, down 4.65% from the previous month’s average and more than 7% from the annual high of $19,450 recorded on May 6.

However, some analysts suggest that raw material prices are likely to rebound in the second half of the year. Lee Jung-woo, an analyst at Daol Investment & Securities, noted, “The trend of declining lithium supply and rising demand, which has accumulated since September of last year, has shifted to a supply shortage, and this accumulated shortage is supporting the current upward price trend in the second half.” He added, “Considering risks related to licensing for Chinese lithium mines and export controls on lithium ore from Zimbabwe, there is potential for further increases in lithium carbonate prices.”