It is quite possible that there has been an orchestrated P&D...

It is quite possible that there has been an orchestrated P&D here as it worked the day before and the day-trading community is quite well organized. But if you are holding lithium in your portfolio then best to ignore the general market sentiment for now. There is some volatility around according to the following report in yesterday's St**kh**d:

Weakness in China’s lithium demand only temporary, says bullish Albemarle.

Albemarle boss J. Kent Masters says calls of lithium weakness in China are premature. The US battery metals giant expects Chinese EV sales to rise 40% or 3 million units in 2023 despite the end of subsidies.

Lithium prices remain sky-high in terms of producer margins, but a slowdown in China has prompted some concerns they will continue to fall from last year’s record highs.

According to Fastmarkets MB, spodumene spot prices on Friday fell US$500/t to US$6750/t, down around 20% their late 2022 highs of US$8288/t. Lithium chemical prices have also sagged from over US$80,000/t to US$66,250/t for hydroxide and US$61,885/t for carbonate on Chinese shores.

The fast downturn in prices has stoked concerns around the ASX lithium market that the end of China’s EV subsidies and a less boisterous exit from its Covid Zero policy could bring brittleness to last year’s strongest commodity market.

Albemarle, the US corporation counted as one of the world’s largest lithium producers, begs to differ.

The US$30.23 billion battery metals giant saw its share price tumble 9.67% on Friday in a broader lithium market sell-off. But Albemarle, owner of 60% of the Wodgina mine and Kemerton processing plant in WA as well as 49% of the Greenbushes lithium mine, says to hold your horses on calling for an end to China’s EV surge.

“As China reopens, we expect moderation in EV demand to be short-lived with medium and long-term demand remaining robust. We continue to expect EV sales in China to grow 40% year over year, an increase of nearly 3 million vehicles,” Albemarle president, chairman and CEO J. Kent Masters said.

“Sales in China are seasonally weak around the Lunar New Year. We believe the latest phasing out of subsidies will have limited impact on demand."

“EV subsidies have rolled off on schedule since 2013 with only brief declines in sales, continued municipal incentives and consumer preferences support a strong demand outlook for EVs.

“Our contract customers are not slowing down their ordering patterns, and early indications are both that cathode inventory and battery inventory in China are decreasing, which is a good sign for lithium sales.”

ASX lithium stocks followed their US counterparts lower yesterday, though continue to remain strongly profitable.

I will be holding tight and looking to buy a few more here and there at lows.