Had a talk with a friend who has connections with Future trading...

Had a talk with a friend who has connections with Future trading in China.

Lithium carbonate Future is manipulated. Long positions are squeezed by Short positions at the moment. Similar situations happened many times in China for other products.Basically it's in Squeeze phase. Real Lithium carbonate price is going down due to the Future depression, but it goes much slower, it's stil in the range of 125,000 ~ 130,000.

Lithium carbonate Future might go down further due to the nature of China's Future market. Some high cost LC producers paused or slow down production, so the price will hold soon. There are no enough Lithium carbonate stock for Future Delivery in January, most investors will close positions before the end of December, but they will squeeze until the last minute.

Another good sign is that China Lithium stocks bounced back in last two days even LC Future went down sharply. High cost producer will be phased out while the low cost will survive and boom.