Well one thing that has not changed today, last week or even this year is the fact that stock piles of world lithium and tin are diminishing fast.
... but how do I know this ?.
Well this fact is clearly represented by the steep price rise of all forms of Lithium in the last few months especially 6% spodumene in China lately and in tins case the last 12 months price rally.
I took these two screen shots from the FastMarkets website, note the dates and compare the pair the spodumene price now and then closing in on 100% increase in just these couple of months. Where are prices likely to be next week, or in a few more months.... or a few years ....what will price be then?. I shudder to think... but I look upwards..
So Spodumene $US400/ tonne in Mid Feb to $720 / Tonne last week! That is a fast moving market.
TIN Here is Tin for the last 12 months... in even more demand than Spod
So how long can AVZ,
which has the biggest undeveloped spodumene and tin resources in the world, decline in such a rampantly bullish market for those two commodities with such a heavy overhang of +ive company news flow coming in next few days / weeks / months (I note that some of these news events could drop at any time now as per the operational update today).
Answer is , ....not long at all.
It will find a bottom shortly (if it hasn't already) once the last of the impatient/ nervous nellies are out then expect it bounce strongly.
By all means trade the trade but .... Don't miss the bounce traders... don't miss the bounce. !! The underlying commodity markets are just too strong any prolonged dip.
