Further to the above - I think this makes nice reading:
Lithium market to remain tight through 2018
Our global lithium S&D analysis supports market data and industry feedback that the
spot lithium market remains very tight, despite some seasonal demand weakness
around Chinese New Year. In the seaborne market, realized prices for major South
American producers (ALB, SQM, FMC, ORE) continue to grind higher, and we
expect the convergence between Chinese domestic prices and seaborne pricing to
continue. The first wave of new hard rock supply has been ramped up and absorbed
by the market. We believe concentrate demand in China is still high, and domestic
production has increased. The news in early January that SQM and CORFO had
reached an agreement enabling SQM to increase production triggered a broad sell-off
in global lithium equities. It will take SQM 5-8 years to increase production rates to
+100ktpa LCE, in our view. The equity sell-off has re-based valuations and delivered
a second round of opportunities for institutional investors to gain lithium exposure.
GXY Price at posting:
$3.19 Sentiment: Buy Disclosure: Held
