Even JL acknowledges, that the spodumen is piling on the doorsteps of the converters, as long as it is piling, no WA-Producer will be profitable. He is even putting bets on his TW account if MT Cattlin is going under the blanket again. I took the profits and will wait out the fall, all ears on China.
My wishful thinking, feel free to comment:
The WA production will take the bulllet, SP on 2015 levels (Ganfeng and Tianqi already are).
The big five will ramp down production.
The big five will(should) acquire the majority of the WA production and teach them how to do business. No more cake, that the converters cannot swallow.
China (and this is hoping) ramps up their subsidies on EV production and electricity storage.
Spodumen prices will get to 2015 levels.
I would wait for that ramp-down, however it all depends on China.
GXY Price at posting:
$1.06 Sentiment: Sell Disclosure: Held
