The oversupply of electric vehicles triggered a long-term downtrend in lithium prices.
Albemarle (ALB), which lost 6.92% on Monday, faces serious selling pressure. On Aug. 5, 2024, CEO Kent Masters recognized the risk from China dictating the availability of minerals used to power electric cars.
CEO Masters said that countries must act now if they want to build Western supply chains for EVs.
Investors wary of the lithium mining sector should avoid ALB stock, along with Sociedad (SQM) and Lithium Americas (LAC). Bears hold a 12% short interest in ALB stock and 10% against LAC stock.
In the iron ore market, Cleveland-Cliffs (CLF) closed at a fresh 52-week low yesterday at $12.73. Metal prices are weakening as demand for automobiles falls.
Additionally, China’s real estate economy is in a permanent contraction.
In the financial sector, B. Riley Financial (RILY) slumped. Shares lost 51.92% on Monday after the firm suspended its dividend. It expects to lose $14 – $15 a share or $433 million to $475 million in losses. This is due mostly to its investment in Franchise Group “FRG” and its Vintage Capital loan receivable.
B. Riley will lose more customers in the wealth management division.
Fortrea Holdings (FTRE) lost 20.35% yesterday after posting a three-cent loss. The clinical research organization reported revenue falling by 8.6% Y/Y to $662.4 million.
