Albemarle Stock Hits 52-Week High On China Tax Rebate Shift

Albemarle Corp (NYSE:ALB) jumped to a new 52-week high on Monday after Reuters reported that China will gradually remove value-added tax rebates on exports of battery products, including lithium-based cells. Here’s what investors need to know.

• Albemarle stock is approaching key resistance levels. What’s driving ALB to record levels?

Chinese Policy Sparks Lithium Price Rally

Under the new rules described by Reuters, refund rates on many battery-related exports will be reduced from 9% to 6% for part of 2026, before being scrapped entirely at the start of 2027. That effectively raises the tax burden for Chinese producers and could lift the floor under global battery prices.

Lithium Futures Surge on Policy News

Reuters said benchmark lithium carbonate contracts in China climbed about 9% and touched their highest level since late 2023 after the tax changes were announced, as traders anticipated a wave of shipments before the policy kicks in and tighter supply conditions later on.

A more supportive price environment is positive for upstream suppliers such as Albemarle.

Why The News Matters For Albemarle

Albemarle is one of the world's largest producers of lithium chemicals used in electric-vehicle batteries and energy-storage systems, as well as a supplier of bromine and specialty chemicals. Higher benchmark lithium prices, as described by Reuters, typically flow through to Albemarle's contract realizations with a lag, supporting revenue and margins.

The prospect of reduced tax support for Chinese exporters could also enhance the relative competitiveness of non-Chinese suppliers. Together, these dynamics helped fuel Monday's rally in ALB shares as investors repriced the company's earnings power in a tighter, higher-price lithium market.

Is This Stock Due For A Correction?

The stock is currently trading 18% above its 20-day simple moving average (SMA) and 61.1% above its 100-day SMA, demonstrating strong momentum. Over the past 12 months, shares have increased approximately 85.04%, and they are currently positioned closer to their 52-week highs than lows.

The RSI is at 72.35, indicating that the stock is in overbought territory, which could suggest a potential pullback. Meanwhile, MACD is above its signal line, reinforcing the bullish outlook for the stock.

The combination of an overbought RSI and bullish MACD suggests that while the stock is experiencing strong momentum, it may be due for a correction.

• Key Support: $140.50

Strong Earnings Estimates Signal Investor Optimism

Investors are looking ahead to the next earnings report on Feb. 11.

• EPS Estimate: Loss of 56 cents (Up from a loss of $1.09 YoY)
• Revenue Estimate: $1.35 billion (Up from $1.23 billion YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $125.53. Recent analyst moves include:

• Mizuho: Neutral (Raised Target to $156)
• Scotiabank: Upgraded to Sector Outperform (Raised Target to $200)
• Baird: Upgraded to Outperform (Raised Target to $210)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Albemarle Corporation, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 95.98/100) — Stock is outperforming the broader market.
• Value: Risk (Score: 0.59/100) — Trading at a steep premium relative to peers.

The Verdict: Albemarle Corporation’s Benzinga Edge signal reveals a classic “High-Flyer: setup. While the Momentum (95.98) confirms the strong trend, the extremely low Value (0.59) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.

Top ETF Exposure

• Themes Lithium & Battery Metal Miners ETF (NASDAQ:LIMI): 7.46% Weight
• VanEck Vectors Preferred Securities ex Financials ETF (NYSE:PFXF): 5.74% Weight
• Global X Lithium & Battery Tech ETF (NYSE:LIT): 6.22% Weight

Significance: Because ALB carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

ALB Price Action: Albemarle shares closed Monday up 4.98% at $169.33. Shares were slightly up during after-hours trading, according to Benzinga Pro data.

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