Let’s work together: miners look for price stability
Lithium Heavy Vurists LionTown and PLS have explained the potential to work together in recent years to solve the price volatility that breaks down the miners.
LionTown General Manager Tony Ottaviano and PLS chief Dale Henderson supported a common effort to develop a more mature price mechanism to protect the price of battery metal from the Chinese market from the Chinese market.
Speaking at the annual Diggers and Dealers Mining Forum in Kalgoorelie on Tuesday, Henderson said that the lithium industry has still emerged and lack market trade structures in more mature sectors such as Iron in Coal.
“So ultimately, I think, the great participants of the sector that probably come together to solve it,” he said.
The lithium market does not have a well -developed futures market, ie prices are mainly determined by opaque special contracts.
Henderson hopes that developing a Spot Trade Platform will increase liquidity and price transparency and help eliminate the wild price fluctuations of the market in recent years.
Other lithium giant mineral sources have previously called for a Spot Trade Market to increase transparency.
Mr. Ottaviano said he was in favor of what it takes to see the price of a transparent and stable lithium.
“I was more encouraged from what Dale said,” he said.
“You can’t have a price like a lithium on Friday, it falls 60 dollars on Monday or falls 30 percent in the last three months.
“How do you answer? It is very difficult to turn a ship so quickly.”
The fast market return LionTown 70 percent in two years, while PLS was two -thirds lower in the same period.
However, after the excessive supply caused the price of the lithium -rich spodum to decrease by about 90 percent from the 2023 summit, the commodity has recently stabilized.
Mr. Ottaviano said China has begun to destroy the supply glut to maintain the sustainability of its industry.
Uz We are starting to see the government policy to remove private initiatives and state enterprises from this maniac push for the capacity of the economy. ”
Mr. Henderson said it was difficult to determine whether the price of lithium was thrown to the bottom.
“Considering what we see historically in the market, it is difficult to call by cutting the connection of the foundations,” he said.
In the use of robots and home batteries, the couple was seen further upwards for request by a pick-up, and Mr Ottaviano foresee that the request could supply the request in a short period of one year.
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