Albemarle once again shows how fast things can move on the stock market:
August to September + 40 %
September - 15 %
Lithium producer Albemarle (ALB) continues to be the most heavily shorted share in the commodities sector.
As at July 31, 14.91 million shares were sold short - this corresponds to 12.67 % of the free float, a slight decrease compared to 14.79 % at the end of June.
Albemarle is aiming for positive free cash flow in 2025 as cost measures strengthen financial flexibility.
The company's COO, Netha Johnson, will be replaced by Mark Mummert. In addition to various changes in the organizational structure, the company is to be "further aligned towards agility and efficiency".
According to UBS, the correction reflected optimism about China's continued intervention to stabilize lithium supply, which is expected to support prices by 20 percent by 2026. For the coming year, UBS expects a drastic reduction in net lithium supply of around 100,000 tons due to site closures and production cuts at ten sites in China. This could reduce the oversupply by around 6 percent and support a price increase to around USD 12 to 13 per kg, compared to the previously forecast USD 10 per kg. Against this backdrop, UBS said the outlook for Albemarle Corp (NYSE:ALB) is now more balanced, but carries the chance of a future increase.
