Motley Fool 27 FebThere is no oversupplyGable's bullish view is...

Motley Fool 27 Feb

There is no oversupplyGable's bullish view is supported by the potentially improving economic conditions."The headlines suggest that demand is lower than expected, and that seems to be the story this year with China's recovery. "But as highlighted earlier, improving PMIs out of the US and Chinese demand for iron ore and copper suggest that we could be at or near an inflection point."He added that there is a false perception that there is an oversupply of lithium because of the announcements of new mining projects."Those that closely study lithium supply suggest that there actually hasn't been a surge in supply during the past year."M&A interest means the big boys reckon there's valueWhile ASX lithium shares have been depressed in 2023, there has been some furious merger and acquisition activity.This is a great sign that the market is at or near the bottom."Those close to the ground are seeing the need to add to their exposures before interest returns to the sector," said **le."And just in the past few days, we have seen some massive rebounds in lithium stocks, which adds more weight to my idea that recent weakness was capitulation and we have seen the lows."