Dec. 3 at 7:50 PM
$SGML Demand obviously isn’t more than supply at the current levels, we had a multi year lithium downtrend (there’s no denying how massively abundant raw lithium is on Earth, the stuff is everywhere).
The actual bull case is that the predicated aggregate demand growth rate - a tremendous underlying factor in the price forecast of the stock and company earnings - has been undershot by analysts. That will inevitably produce a difference in real vs forecasted spot price of lithium based materials in 24-36 months time.
This means the market just realised it’s been heavily underpricing these companies and therefore volatility and price spike.
So yeah it’s not that “demand is MORE than supply”, it’s that any larger demand than expected (no matter what amount) drives spot price higher long term.
FIFY:
“The $ per tonne of forecasted supply was being heavily undervalued because of the weak (and incorrect) demand growth rates published by analysts who didn’t know what they were talking about.”
