Guys I have a burning question, which I just do not understand
Here goes
Re-Pricing & Offtakes
1) Currently, PLS supplies all its commitments based on pricing linked to or closely related to SPOT price
2) The SPOT price dictates the pricing, but has no consequences to quantity/volumes in pre-existing contracts
3) I believe a number of Lithium companies inclusive of SQM are linked to this mechanism
4) I understand that low volume of supply is entering at lower prices, which dictate/sway the market prices. Namely supply from Zimbabwe/Africa
5) It is in the interest of vested parties to ensure low volume can drive spot prices lower, as the big pre-existing contracts are linked to this price
6) Lithium futures could be shorted, or supplies fed in just to keep seeing the price tumbling by parties with vested interests
The Crux of the question
7) So if low Volume supply can sway markets, then why is it impacting the overall existing agreements and why are the big miners accepting this price for the bigger volumes of existing supply
IN my head, the markets are paying for long term contracts at manipulated market pricing? Does that make sense?
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Last
$2.98 |
Change
-0.020(0.67%) |
Mkt cap ! $8.972B | |||
| Open | High | Low | Value | Volume |
| $2.92 | $2.98 | $2.90 | $38.78M | 13.16M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 15056 | $2.97 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.98 | 89928 | 9 |
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| Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
| PLS (ASX) Chart |