Sto***ead today. Pilbara Minerals most shorted ASX stock Pilbara Minerals (ASX
LS) has become the most shorted stock on the ASX. Its short position is 11% as short sellers also target other lithium stocks including Core Lithium (ASX:CXO), Sayona Mining (ASX:SYA), and Lake Resources (ASX:LKE).
Short sellers seem concerned lithium prices could fall in the coming years with forecasts of surplus of the battery mineral as more lithium mines globally come into production.
As *’s Josh Chiat noted last year, lithium stocks banked incredible margins as prices charged to unforeseen levels as a shortage of supply ran up against a 50% rise in electric vehicle sales.Prices ran up to over US$80,000/t in China for downstream chemicals and US$8000/t for spodumene concentrate.
But they’ve since fallen to about US$30,000/t and US$3500/t respectively, still portending extraordinary margins for producers like PLS, which had $3.3 billion of cash sitting in its bank account at June 30 after a record year of volume and prices at its Pilgangoora mine in FY23.
However, with signs of China’s economy faltering and its EV demand moderating, there are concerns about a drop off in lithium prices.Syrah Resources – (ASX:SYR) has also been targeted by short sellers. Weak graphite prices have been having a negative impact on SYR’s performance, with its share price down more than 70% YTD.
So, looks like the PRICE of Li-whatever, IS the major factor. And I'm sure that many know where that IS going. Patience.
