BY MARK LEVINS / Contributor AUSTIN, Texas (AP) Lithium mining stocks are in a tailspin.
The market has been battered by the global downturn in the price of lithium and other metals and is reeling from a slump in global demand.
And with no major global event this year, investors are watching the markets closely for signs of a rebound.
Lithium and other metal metals have been among the most popular commodities for investors this year and the stock market has seen some strong gains.
The lithium price index, which tracks the price at which miners can sell the metal for dollars, has been up nearly 12% in the past two months and surged as high as 1,000 points this week.
The S&P 500, which measures the broad market’s value of stocks and bonds, has jumped more than 17% this year.
Lithia has also been a big winner in China.
Chinese investors have been buying up big chunks of the U.S. market, where the price has fallen and where U.K. and European lithium mining companies are struggling to survive.
Lately, the U to S lithium price is up about 6% or so.
But the lithium price in the rest of the world has fallen sharply.
The price in Germany, where China is a major consumer, has fallen to $1,200 from $2,500 in August, according to data compiled by Bloomberg.
And the price in France, which is a main supplier of lithium to China, has dropped more than 7% to $3,300 from $3.75 a year ago.
“The markets are going to be extremely volatile, and the longer it goes on the more volatile it gets,” said Mark Marder, chief executive of the Canadian lithium mining company Lithium Mining, which has about $1 billion in revenue.
S.-based company has been losing money on the lithium market, which includes a glut of ore and supplies from the U in China, and is worried about a slowdown in demand.
Lithum mining has been a driver of a glut in ore from China and is now looking at a possible reversal this year as demand falls, said Chris Sontag, the chief executive officer of U.N. Metal, which makes ore for U., European and Chinese miners.
Lithic mines have struggled in the U for years and many investors don’t trust the company’s ability to turn around the fortunes of the company and its mines.
Litha Mining is trying to stay afloat in a market that has seen a lot of bad news this year from the collapse of China’s aluminum industry, the financial crisis in Greece and the U.-China trade war, which U.B.C. analyst Stephen Hsieh said has created a lot more uncertainty for investors.
“Lithium is a very good deal,” Hsies says.
“We’re seeing it go down about 6-8% a year on average for the past couple of years, which I don’t think has been sustainable.
I’m not sure how that will continue to play out.”
The price of copper in the S&s S&am Index is up 0.7% this week, the biggest increase since July.
But copper is in the crosshairs of some analysts who say that while copper is still a very attractive asset, it is now at risk of becoming worthless.
“A lot of investors think copper will stay there,” said Steve DeMarco, head of commodities for IHS Global Insight.
“There are a lot people who are very concerned about copper.
If copper goes down, then that is a huge loss for the copper industry.”
copper price has also dropped significantly this year due to the Chinese government’s tighter controls on the metals, and mining companies in the West have been hit hard by a drop in ore prices.
U. S. copper prices dropped $3 billion last year, but have fallen even further this year with copper prices falling about $10 billion.
The metals market is still recovering from the recent slump, and some analysts think copper prices will rebound in the near term.
The global lithium market is in a free fall as investors flee from China.
The International Energy Agency forecasts global demand for lithium will drop by about 10% in 2019 and by another 30% by 2021.
The outlook for the lithium markets in China and other emerging markets remains uncertain.
China has seen its lithium demand decline over the past year.
China will still be the largest buyer of lithium globally in 2020, according the International Energy Association.
But China’s demand will be about 40% below its 2016 level, and it is not clear how much that will affect the lithium prices.
Lithonium mining stock market outlook, August 2018 The lithium markets are volatile because the demand for it is in decline.
The reason is a global glut in copper.
The Chinese government has tightened its controls