Why are lithium prices collapsing?
internationalbanker.com
Why are lithium prices collapsing?
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Re: Why are lithium prices collapsing?
#2The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling.
And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie electric car sales/lithium use is still increasing.
Re: Why are lithium prices collapsing?
#3The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
> the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling
the movement reflects the expected future supply and demand at the time.
The speculation is something that financial engineers use to offload the risks of such commodities from one party to another (such as from producers to consumers of said commodities).
Re: Why are lithium prices collapsing?
#4Much better article in the Economist this week.[1]
[1] https://www.economist.com/business/2023/04/20/why-crashing-l...
Re: Why are lithium prices collapsing?
#5The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Markets in a high energy cost environement make their margin more on volatility and speculation.
You will also see margins themselves widen until the system falls in on itself.
We dont have a financial margin tracker.
Also increasing interest rates in a highly indebted economy increases inflation; short term by widening of margins and long term by offputting energy extraction.
Lithium will explode soonish.
Margins amplify volatility.
Re: Why are lithium prices collapsing?
#6Much better article in the Economist this week.[1] [1] https://www.economist.com/business/2023/04/20/why-crashing-l...
aka: https://archive.is/k5Hjd
Not a great article (from a minerals and resources perspective).
Two specific factors; recent mine expansion at sites that dig in the dirt and produce concentrates _and_ recent and near future expansion of processing locations that take concentrates and refine to ship usable lithium.
Eg: Minesite in Western Australia currently ships concentrates to Malaysia and will soon ship also Texas.
Re: Why are lithium prices collapsing?
#7No mention of CATL releasing sodium based batteries this year? Just their dropping of lithium battery prices?
Re: Why are lithium prices collapsing?
#8Much better article in the Economist this week.[1] [1] https://www.economist.com/business/2023/04/20/why-crashing-l...
Really? It seems quite inferior to the one posted and lacking a lot of substance.
Re: Why are lithium prices collapsing?
#9The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Wait until you learn about OPEC and oil prices :-)
Re: Why are lithium prices collapsing?
#10The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Wait until you learn about OPEC and oil prices :-)
Because they will change their mind?
"demand and supply"
OPEC is a cartel constraining supply to increase prices, it's not a free market but an example of "demand and supply" in it's most brutal form. OPEC prices are not about "gambling".