Hi mate, still believe the main catalyst for a big rally will be a move in the Chinese spot price. That has been essentially flat for 4 months and they must have worked through a fair amount of inventory by now. The over supply case has been falling apart for the better part of 6 months and unless SQM and Albermarle can produce 3x in 2019 what they produced last year MS will have to upgrade their price forecasts.. That would be a massive signal to the market that price weakness is done and averages are not likely to lower. Thats not far away. Maybe 2nd quarter... As an example ORE reserves are are being priced at US$6500t vs current realised price and f around $US10,500t (including low grade).. MS long term price forecast is around $US8000t so still well above what market is pricing.. Not sure what GXY is but assume would be similar metrics..
GXY Price at posting:
$2.25 Sentiment: Buy Disclosure: Held
