I wonder where they think all the Li for the 80 or so giga...

First 13461 Last

Share
Profile

Follow
Guemar

2,452 Posts.

2026

03/07/19

19:48

Post #: 39360331
Share

Originally posted by natanui: ↑

Does anyone have access to the Macquarie Wealth report that came out today? This was reported in The Australian today ...

Tough times ahead for lithium: Macquarie
The lithium bears at Macquarie are tipping a tough time for Australian hard rock producers, suggesting a number may be forced out of the market as oversupply swells.
A note circulated by Macquarie Wealth Management says that, despite steady growth in demand for lithium batteries, the response from miners has been “wildly in excess of requirements”.
Macquarie analysts note a growing trend of “temporary” setbacks at lithium producers - including the April earnings downgrade by battery cathode maker Umicore; a delay in the ramp-up of Albemarle’s Chinese lithium hydroxide plant; Pilbara Minerals’ decision to reduce its concentrate production; and delays to Galaxy Resources shipments - suggesting they are evidence of significant oversupply in the market.
“In all cases, the events discussed have been explained to be temporary, but taken together it begins to paint a concerning picture. Not only electric vehicles slowing but energy storage system demand contracting outright; not just hydroxide weakness, but also carbonate; not just a problem with salts, but also rock oversupply,” the note says.
Macquarie says the issue for investors now is not whether prices and margins will fall, but which of the lithium producers will go broke and exit the market in the near term.
“Our initial view had been that the large South American brines producers would be best placed to survive due to their costs, but that was on a carbonate basis, which is the lower priced material,” the note says.
“Then we began to view the Australian miners with the foresight to build hydroxide plants as contenders too, but the delays to high-nickel cathode adoption has made this material’s demand less certain at least nearby, as we see from the price spread compression.”
“Ultimately it will probably be a mix of brines and mines, carbonates and hydroxides, but as the shift into a buyers’ market intensifies, product quality is likely to become key to survival.”

Expand

I wonder where they think all the Li for the 80 or so giga factories under construction will come from?

Oh wait, there will be another highly paid MacB report in mid/late 2020 sating: "Li demand underestimated, battery giga factories sitting idle while waiting for feedstock. Only a few will survive who can afford the sky high prices caused by the current Li shortage."

How you wish then you had not sold your shares in 2019, but instead accumulated!

PLS Price at posting: 52.0¢ Sentiment: Buy Disclosure: Held
38 Upvote

5 Great analysis

Reply

Top Stories

MSB

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

SPR

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

OCC

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

SRL

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

PL3

Patagonia looks to raise $2.15M for South American exploration and development

There are more pages in this discussion • 2,974 more messages in this thread...

First 13461 Last

Add PLS (ASX) to my watchlist

(20min delay)
Last $3.01		Change 0.050(1.69%)		Mkt cap ! $9.059B

Open	High	Low	Value	Volume
$3.03	$3.04	$2.96	$47.61M	15.86M

Buyers (Bids)

No.	Vol.	Price($)
14	168080	$3.00

Sellers (Offers)

Price($)	Vol.	No.
$3.01	137639	2

View Market Depth

No.	Vol.	Price($)
11	75689	3.000
7	205449	2.990
12	407672	2.980
24	238752	2.970
25	78701	2.960

Price($)	Vol.	No.
3.010	67232	1
3.020	176193	15
3.030	267726	16
3.040	299668	20
3.050	191927	24

Last trade - 16.10pm 09/07/2024 (20 minute delay)

PLS (ASX) Chart

I wonder where they think all the Li for the 80 or so giga...

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Patagonia looks to raise $2.15M for South American exploration and development

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

I wonder where they think all the Li for the 80 or so giga...

Top Stories

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Patagonia looks to raise $2.15M for South American exploration and development

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News