@Dizzle another this to take into account is that any spot buyer that also has contracts with us or other spodumene players will be receiving spodumene at a contract price aswell as spot price bringing there avarage price down therefore can afford to pay higher spot price compared to converters that are relying on just the spot market...
Eg, spot market player $2240 per ton at 30k hydroxide = 15% margin
Vs contract $1000 and spot $2240 player with an average price of $1620 so they would have a much higher margin.
My point being if demand increases the players who have contracts will be able to price out those reliant on the spot market because of lower average prices this could squeeze the margins of the spot market converters to 0 while the contact converters still make a profit...
We could see some spot converters getting very desperate and either going bust or some one sided mergers..
Gltah cheers
@Dizzle another this to take into account is that any spot buyer...
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