Our favorite shorter and recidivist manipulator, Goldman Sachs (GS) has struck gold again:
The broker now sees lithium prices crashing a further 25 per cent, and nickel slumping 15 per cent over the next 12 months.
www.afr.com
GS said that the recent recovery in battery metals, cobalt, nickel and Li carbonate did not signal the end of the bear market, but was due to short covering. GS said that the metals are likely to trade even lower over the next 12 months. Specifically, cobalt (-12%), nickel (-15%) and Li carbonate (-25%).
GS also stated that lithium markets will be in 150,000 tonne surplus in 2024, and 336,000 tonne surplus in 2025. This means that further supply cuts will be needed to rebalance supply and demand markets. Presumably, supply cuts will come from further mothballing of uneconomic projects, more marginal mines and processing facilities put into care and maintenance, and less spent on greenfield exploration and development.
GS’s 12-month price target for Li carbonate is now $US10,000/t (down from its previous prediction of $US11,000/t).
Watch the market and our recent gains fall away, and GS pick up brazillions on its self-serving predictions. Thanks again GS.
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Cheers
F