China exported 676,605 tonnes of unwrought aluminium and products in May, the highest volume in 9 years, according to data from the General Administration of Customs. The spike in Chinese exports has turned the country into a net exporter of aluminium.
On the demand side, aluminium smelters in Europe continue to curb production due to high power prices.
Bloomberg's Aluminium futures index made a notable drop on Thursday, down -6.3%.
Chinese lithium carbonate prices picked up slightly this week, up around 5% to 474,500 yuan (US$71,000) a tonne.
Benchmark Minerals released an interesting piece on 5 reasons why Goldman Sachs is wrong about lithium oversupply. In short:
Industry cannot rely on China feedstock to meet market demand
Capacity does not equal supply
New lithium supply comes at a higher cost base
Contract pricing is important as the market balances. There is no single lithium price
Understanding how lithium chemical capacity used is crucial
Its worth noting that while Chinese lithium prices are starting to stabilise, ASX-listed lithium stocks have not. The risk-off attitude that has taken over the market has smashed most lithium names down 5-15% this week.
Affordability has taken quite a toll on fertiliser demand, including urea, potash and phosphate.
North American fertiliser prices have fallen around -25% since March all-time highs.
Its interesting to observe a sharp pullback in fertiliser prices despite relatively high prices for agriculture (cough $12 lettuce).
Notable stocks in this space include:
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