I am guessing it’s simply following the normal cycle of a commodity. How many times have we seen this with coal and iron ore. Li prices are retreating at the moment. Interestingly, one would think this has to eventually turn. For all the new mines and explorers continuing to come on board there has been little meaningful increase to the actual production. PLS continues to build out and make a tonne of cash. In the short term some offset in price will come about through increase in overall production whilst, moving forward they will be rewarded as prices cycle upwards. This reminds me very much of the similar scenario over the last decade with FMG.
Pilbara Minerals is now one of the most shorted stocks on he ASX. Does anyone have any idea what the short thesis may be?
Most likely they are using the Lithium prices on the Guangzhou futures market which has been in steady decline
But I think PLS don't follow the above as they already have negotiated prices for different concentrate.
So using above pricing could be deceptive. Plus I think the futures market is deliberately there to mislead.