In the face of a challenging market environment, Albemarle (NYSE:ALB) Corporation has downgraded its full-year FY23 forecasts, following its Q3 report. The company cut its FY23 EBITDA forecast by $1 billion due to weaker lithium prices and higher costs. Additionally, Albemarle has decided to drop its bid for Liontown Resources (ASX:LTR) and plans to reduce capital expenditure and M&A activity. Its joint venture partners at Greenbushes, Australia's largest lithium mine, are considering production cuts.
Despite the volatility in the lithium sector, characterized by over a 70% price drop this year and a recent 1.8% dip, optimism persists among some players. Azure Minerals Ltd's shares surged 7.6% to a 16-year high. Major stocks like Livent (NYSE:LTHM) Corp and Sociedad Quimica y Minr de Chile SA also increased.
Azure has accepted a takeover offer from SQM at $3.52 per share. This move has led to Gina Rinehart of Hancock Prospecting acquiring an 18% stake in Azure shares. Speculation continues about potential interest from Mineral Resources Ltd, given its previous investments in lithium juniors Delta Lithium Ltd and Wildcat Resources Ltd.
Federal Reserve Chair Jerome Powell's comments about nearing peak US interest rates have been suggested as a potential boost to global consumer confidence. This could impact EV demand, which analysts at Trading Economics predict will fall by 11% this year in China.
The broader context sees other ASX-listed lithium stocks including Livent Corp , Sociedad Quimica y Minr de Chile SA, IGO Ltd, Allkem Ltd, Pilbara Minerals Ltd, Liontown Resources Ltd , Sayona Mining Ltd, and Core Lithium Ltd (OTC:CXOXF) showing strength while the S&P/ASX All Ordinaries Index increased by 1.2%.
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