http://www.mining.com/chinese-investors-key-cobalt-price-hits-month-low/
"The auto industry is "
waking up too late" to the fact that China will hold most of the world's supply of battery raw material cobalt, Ivan Glasenberg, CEO of top producer of the metal Glencore, said in March."
"Not only is primary production highly concentrated, but the downstream industry is beginning to resemble a monopsony. China, despite having no cobalt resources of its own, is responsible for some 80% of the world’s cobalt chemical production, which overtook metal production around four years ago.
Zhejiang Huayou Cobalt, the world's top cobalt refiner, increased output 35% last year and on its own was responsible for 20% of global output. The company sources nearly half its requirements from mines it owns in the DRC."
It has been awhile since I started looking at marco fundamentals and I should be indulging more to get as informed as I can from free research to have an idea what is out there.
Here are some charts for people to peruse and I had a look from another poster in a different stock mentioning the big Li producers in that sector and lead me to cursory glance on 2 Chinese producer based on the SP numerical price as a guess on the quality of the company. One happened t be the company in the article.
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It would appear this sector is coming off the boil after a spectacular rise towards the H2 of 2017 into this year. You can see our more credible Li and Co sectors are tracking these big wigs including LIT etf. This is the price mechanics of froth removal which IMO is healthy or else we face a collapse when the last bull has taken up position.
LIT etf is interesting on the current support. If you flip the weekly, I am seeing a nice pin bar bullish formation 3 weeks ago and that etf has stopped falling. I can't comment on other stocks and in the Lithium/Graphite space, the shorting % is very entrenched. If I were the big players with big exposure in any of these 'tier 1' assets, I would be hedging myself too. Good luck.
