Citi, now forecasting "that prices would improve by as much as 37% from current levels by 2027."
"Lithium cycle has troughed as Chinese battery makers set to ramp up production –Citi
Major broker Citi sees lithium market dynamics shifting away from the “short term bearish” view they’ve held for the last 9 months.
Carl CapolinguaLivewire MarketsFollowFor regular readers of my lithium updates, you’ll know that major broker Citi has been one of the most vocal and accurate forecasters of the lithium price through 2024. They turned decidedly bearish in April and doubled down on that bet in May.Having said this, throughout the period Citi was bearish, it retained a substantially bullish longer term outlook. In this recent article I wrote in December about their then-latest views, Citi said it expected the present lithium minerals supply glut to dissipate this year and that prices would improve by as much as 37% from current levels by 2027. “Short term bearish, long term bullish”, it’s been a consistent theme of Citi’s lithium strategy for 9 months…until now. Ok, I might have pumped that up a little lithium bulls, because Citi haven’t exactly turned short term bullish yet, but their latest research report on the lithium market does suggest that they’re no longer bearish. The main reason for the change of heart in Citi’s short term view on the lithium market is due to their attendance at a major lithium forum held in Chongqing late last month. According to Citi, the event was attended by over 30 key industry participants including commodity traders, battery manufacturers, and lithium industry experts."
