This has to be great news for Li producers and suppliers.
Perhaps nows the time "producers" take stock and reduce production. As every producer is donkey deep with China, this will force China, to use any stocks they're sitting on and manipulating the market with, to be consumed.
In turn, demand and profitability will grow as demand returns.
Profitability returns and all are happy.
When I had an engineering company, I would say to clients, who would always try and screw you for a better price, "if I do this work this year, for nothing, I won't be here next year, to work for you".
They soon got the idea, they either excepted the price, or they went elsewhere. Hence numerous companies folded around me.
Same applies across any business.
But you know what???
There's always, always, a company or two who think they can do it for shag all!
Be interesting to see the full year results, for the companies who are currently continuing on like its business as usual.
I still maintain, with quality product and raising 40 - 60 million (whatever the figure is) A40 is in good steed to capitalise on the upswing in demand.
40 - 60 million, in the grand scheme of things today is chicken poo, I'm sure the people on the movie star salaries realise that too. And the appropriate funds will be raised!
Put another way, if A40 can't raise this sort of money with the operation they have, what chance do others have, of getting any funding?? To me, a very serious consideration!
We've all whinged and bitched asked for blood but now when you take another look over it, A40 has a much higher chance than most, of pulling through this.
If we don't make it, then there's going to be, a lot more carnage in the Li space.
AIMO
DYOR.
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