General Discussion AGY, page-20171

Big Jezza here with some good news for y'all

There's going to be a bit of upward pressure on the lithium spot price at the moment.

Here's some data according to SMM (Shanghai Metal Markets):
Current Spot Price: $96,200 CNY  (+200)  (up for the first time in ages, albeit slight)

and here's a list of the futures contract price to purchase lithium for at a future date (e.g. 2402 = 2024, February)



With current spot prices at $96,200 (+$200); and
February price at $97,450 (+$850)

The difference between February price and spot is $1,250 which creates pressure for spot price to go up over time. Yes this price difference is small, but there are 2 key points to make:
1. Nonetheless the futures price is higher than spot price, not lower which is a good sign
2. The difference between spot price and future price is growing, with most months posting gains of ~$800 - $1,300.

The futures price isn't a reflection of what spot price will be at that future date, but rather reflects anticipated market forces whether it's higher or lower than current spot. so e.g. by June 2024, the December 2024 future price could be $130,000 (up from $104,400) for example (so don't let that dishearten you).

Hope you all enjoyed your weekends.

14 hours of renos done on Saturday, and another 12 hours put in today. Getting it done.