Local lithium market threatened

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Much has been said about the lithium market this year. Morgan Stanley predicted overproduction and many investors preferred to focus on other minerals.

During the Benchmark Minerals conference that took place a couple of weeks ago in Newport Beach, the founder of House Mountain Partners, Chris Berry, mentioned the «unnecessary focus on Chinese prices» as a disadvantageous factor for white gold, because instead of focusing on short term prices, investors should pay attention to quarterly price performance to get a better idea of where the market is moving.

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In Mr. Berry’s opinion, this is the first time for many years that there has been an imbalance between share prices and demand.

«I have not come across data that demonstrates that demand is declining … demand appears only to strengthen,» he told the press.

According to Mr. Berry, 2016 and 2017 were good years for lithium prices, while 2018 has seen price adjustments, as a result of very cheap opportunities on the market.

Figures provided by COCHILCO report that projected global demand for this year will reach 372,288t LCE and 59% of this demand is for batteries for electric cars and other portable devices.

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