LITHIUM RISES MORE THAN 40%, REACHING THE HIGHEST PRICE IN THE LAST 6
MONTHS.
Market
prices for lithium have been intensively fluctuating during the past few years,
and many investors have speculated about the supply and demand for lithium in
the growing market for electric vehicles.
In
general, the markets for base metals and industrial metals are openly traded
and pricing is usually set by all market participants. However, some are set or
"fixed" several times each day by some "market makers".
This
process is very controversial and many market participants have argued that
these “market makers”: stocks’ traders, some banks and even industries are
fully exploiting inside information.
Let's
analyse the following data: during the last 6 Months Lithium prices have passed
from U$D 8,400 (lowest price in June 2025) to U$D 11,782 (highest price on
August 19th, 2025) a price variation of more than 40%.
However,
the share prices of still profitable lithium producing companies (ALB, SQM,
LAC, BHP, and others) have not increased their price in the same proportion. Is
the answer “market makers”?
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