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12/06/19
17:58
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Originally posted by captjohn
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Albermarle (ALB) big Lithium producer has announced they will not participate in the LME futures contracts for pricing Lithium on the world market.
They consider Lithium a 'specialist' chemical & not a commodity. ( ref. from Bloomberg.)
LME is partnering with Fastmarkets & expects to list to start trading future contracts on LME in 3 rd. Qtr.
IMO this is a major move to allow world markets to determine Lithium long term & spot prices ...like Iron ore , cobalt, uranium,copper etc for example .
Then if ,say, Brine producers in sth.america had major floods ...then Wall st./London, would increase spot prices ...like Iron ore recently.
Presently we are controlled by Chinese converters that keep reducing our prices by so called bottlenecks ( who knows if true)but maintain their own healthy margins at our expense.
Say long term price is , $750 U.S... & spot is $880. then any extra production can be sold for the spot price to whoever needs it.
Interesting to see this happening .
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This is just like how real estate companies try to obfuscate the price in hard times by using tactics like "end of date sale" as well as under-reporting auction results. If the price is kept out of the sunshine it allows the salesman to run the show. It won't work out for them.