Over supply is the reason due to many new mines and current mine expansions which means to much lithium
and no one buying it which results in lithium prices falling very hard and if you google it just about every site
that is lithium is saying this is the reason and it will continue past 2025.
UBS forecasts lithium spodumene prices to average $US3500 a tonne in 2024, before retreating to $US3000 a tonne in 2025. Morningstar equities analyst Seth Goldstein said investors should expect extreme volatility in the share prices that have come to define the sector over the past few years.1 Sept 2023
Lithium carbonate prices sank below CNY 170,000 per tonne, the lowest since the two-and-a-half-year low of CNY 165,000 in April, amid lower demand. Battery manufacturers for new energy vehicles phased out input buying activity since the start of the third quarter as their inventories filled up and funds from previous government-led subsidies dried. The concerning macroeconomic backdrop for the Chinese economy also translated to low consumer spending for electric automobiles, driving 10 Chinese new-energy vehicle producers to offer price cuts to reduce the supply glut. Consequently, lower input demand resulted in a 10% reduction in battery prices in August, according to key market players. Additionally, further demand concerns emerged after the EU launched an investigation on predatory pricing for Chinese vehicles due to Beijing’s subsidies, risking tariffs and trade barriers. Chinese commodity markets are closed on the first week of October for Golden Week celebrations.
Trading Economics provides Lithium pricing based on spot prices for Lithium Carbonate, 99.5% Li2CO3 min, battery grade, traded in China. Lithium is a silver-white light metal. Lithium hydroxide is used in batteries for electrical vehicles and mobile phones. Lithium hydroxide is produced from a chemical reaction between lithium carbonate and calcium hydroxide. The biggest lithium producers are Chile, China, Australia and Argentina. The largest lithium importers are China, Japan, South Korea and the United States.
We all know we should have sold at $5.50 but greed takes over and the share price falls. Some will be buying to get average share price down but all they doing is losing money and at some point will bail.
I knew what was coming and even said so and like you I have been holding in the false hope it goes back up.
I know I have made a mistake and still holding. It may get a little bounce soon but reality is the lithium prices are falling very hard.
PLS and others will only go up if the lithium prices goes up or China starts buying again.
My main shares are iron ore which is a more stable stock. PLS is high risk high reward so I'll probably just keep holding
like some do. The dividends will get weaker due to PLS not making so much money. Who knows PLS might start
spending more of their cash on dividends to get people buying their shares.
We all remember 2 years ago when it hit $4 and we all mainly thought it would be $10 not long after.
Lithium prices fall very hard and this is the result.
Also must factor in many car companies planning to move away from lithium to solid state.
Bad timing for us all.
(20min delay)