The GS article is based on an assertion that the supply side response has been too much and prices will drop until 2024..to a level materially higher than they were 2 years ago. That's a whopping 18 months away... 3 months ago GS said we were in the first innings of a commodity super cycle that will go beyond a decade.
So let me get this straight...the theory has now bust in less than 3 months, and not only that but in the next 18 months so much Li capacity is coming online aligned with so much port capacity and employment bottlenecks that we will meet the gap in demand we have in the market now for unfilled orders and meet forecast demand so that prices will drop materially?......okay ...
And.... what do we think the supply side will start to do if prices drop to a level that isn't turning a good dollar and return on the invested capital... PLS board wont shelve a beyond 580Kt expansion, and Core will go beyond its start up nameplate capacity?...give me a break..
PLS Price at posting:
$2.36 Sentiment: Buy Disclosure: Held
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