General Discussion AGY, page-19037

In regards to price.

Previously contract price used to be 12/6m contracts. When the boom started the suppliers (like PLS) got greedy and wanted to capture the gains earlier so started reducing contract terms plus using auctions/spot more. This is great when price is high but you also get the lower end quicker when falling. So the whole thing was for nothing really and my thoughts are long term stability will be achieved by something in the middle say around the 6 months mark as standard.

Since the last peak de-stocking has occurred as expected for producers to save money. The supply chain numbers in/out plus inventory don't add up and clearly point to inventories running down very low.

From an economic point of view price should settle around where it is viable to bring new PROJECTS to be built. At the moment it has gone below that and it has even gone below where lepidolite is economical so that should be out now too.

Demand is still there and price will return over the next 12 months - the next leg up on EV's will come next year when rates start being cut and then it should be on.

My thoughts are the Li market needs to settle and it will becasue suppliers/producers will get sick of the volatility and things should settle somewhere around $25-30k or higher on long term contract.

All imo dyor.