Good News & Bad News, page-10761

Thanks for posting, and the research notes' key point is to do with the fact that most producers are not receiving spot prices for all their production, which is nothing new for most here. The rest of the note is vague, lacks substance, particularly wrt oversupply.

We have demand for end product growing at twice the rate of supply, therefore, maybe what GS should have said was, prices will soften as new supply comes online, dependant on demand. They touched in demand, but the rest of the note is just fluff.

We have been told that supply will not fill the gap this decade, but the gap will be less severe as new supply comes to market, assuming, all that supply comes online - on time, on spec and at nameplate capacity, cough, cough....

Further, GS analysis only focuses on an 18 month period, cough, cough. If they're short term outlook is correct, it will be detrimental for non-producers / developers, which in turn will increase the pressure on the incumbents / producers to expand and do the heavy lifting.