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the marginals, read China, will always exert a large influence on the market..Albemarle reports 62% fall in adjusted EBITDA as falling lithium chemical prices biteComes after Chinese majors Ganfeng Lithium and Tianqi Lithium reported big drops in profitability in September quarterBenchmark says weak NCM cathode demand is weighing on lithium hydroxide pricesAlbemarle has become the latest integrated international lithium producer to cop a hit — more than halving net cash forecasts for 2023 — as falling lithium chemical prices place the pressure on downstream producers.The US giant said a mismatch between spodumene pricing and chemical pricing — part of its energy storage division — was partly to blame for a 61.9% year on year fall in adjusted EBITDA from US$1.19 billion to US$453.3m.Its net income tumbled 66.3% YoY to US$302.5m, despite higher volumes leading to a 10.5% rise in net sales to US$2.31 billion.Lithium chemical prices have tumbled 65% in 2023, falling from over US$80,000/t late last year to around US$23,500/t today.Most of that has come as EV sales growth in China, while strong in nominal terms, has trailed lithium supply growth with rising production from WA’s spodumene suppliers, new Chinese-linked lepidolite mines in Africa and domestic lepidolite mines in China itself, many now considered to be pushing at their margins.
the marginals, read China, will always exert a large influence on the market.
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Albemarle has become the latest integrated international lithium producer to cop a hit — more than halving net cash forecasts for 2023 — as falling lithium chemical prices place the pressure on downstream producers.
The US giant said a mismatch between spodumene pricing and chemical pricing — part of its energy storage division — was partly to blame for a 61.9% year on year fall in adjusted EBITDA from US$1.19 billion to US$453.3m.
Its net income tumbled 66.3% YoY to US$302.5m, despite higher volumes leading to a 10.5% rise in net sales to US$2.31 billion.
Lithium chemical prices have tumbled 65% in 2023, falling from over US$80,000/t late last year to around US$23,500/t today.
Most of that has come as EV sales growth in China, while strong in nominal terms, has trailed lithium supply growth with rising production from WA’s spodumene suppliers, new Chinese-linked lepidolite mines in Africa and domestic lepidolite mines in China itself, many now considered to be pushing at their margins.
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