Post by pling on Feb 25, 2016 17:45:14 GMT
Fra linkedin - Joe Lowry, 24. februar 2016
- While the market (and note my use of the word market not "spot market") price for lithium in China has gone up almost 3X in the past few months and shows no signs of returning to former levels any time soon, ALB seems determined to be the low price supplier in addition to a low cost supplier. Nothing wrong with that strategy if it is within reason.
- I agree that ALB is better served by not appearing greedy but there is a difference between "greed" and missing a long term price trend at the expense of your shareholders. Does ALB really think prices above $10 or $15/kg are going to destroy demand?
- Only time will tell but I am willing to bet lithium price in China at the end of the year is still in the $20/kg range and that demand in China grows faster than Korea and Japan again in 2016. ALB could double their pricing to lithium ion battery material makers and still be selling at less than 70% of the China price (ex VAT).
- I am personally active in the market. In the past month I have sold FCLs of carbonate above $15/kg and hydroxide at $20/kg - outside of China.
- While the market (and note my use of the word market not "spot market") price for lithium in China has gone up almost 3X in the past few months and shows no signs of returning to former levels any time soon, ALB seems determined to be the low price supplier in addition to a low cost supplier. Nothing wrong with that strategy if it is within reason.
- I agree that ALB is better served by not appearing greedy but there is a difference between "greed" and missing a long term price trend at the expense of your shareholders. Does ALB really think prices above $10 or $15/kg are going to destroy demand?
- Only time will tell but I am willing to bet lithium price in China at the end of the year is still in the $20/kg range and that demand in China grows faster than Korea and Japan again in 2016. ALB could double their pricing to lithium ion battery material makers and still be selling at less than 70% of the China price (ex VAT).
- I am personally active in the market. In the past month I have sold FCLs of carbonate above $15/kg and hydroxide at $20/kg - outside of China.