...Australian producers won't have to sell at a loss but a low margin.
....only marginal producers like LTR and few others would have to decide if they would want to produce at optimal capacity, if they don't their production cost per ton would be even higher.
....when you have a large capex plant like Kathleen Valley, you have enormous fixed cost to cover and you need large cashflows to service large loan sum, so not operating even at a loss is not an option. LTR would either have to find a way to lower its variable cost of production, seek financial support (which it is doing) and hope the Spod price recovers or able to convince its buyers to buy their offtake above the spot price.
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SMM: #Lithium carbonate spot prices will continue to trend downwards in the near future. How could that be? Are spodumene producers, particularly in #Australia, willing to sell their concentrates at a loss?
