Shares in Pilbara Minerals Ltd (ASX: PLS) are on a tear, running ~25% higher in June into record territory.
Today was another record-setting day for the Pilbara share price, which hit an intraday high of $1.58 this morning.
The lithium miner’s shares are currently up 3.15%, trading at $1.54.
Lithium prices continue to advance
It’s possible that the soaring Pilbara Minerals share price is a reflection of an elevated level of lithium demand and spot prices.
According to the latest global lithium update from Fastmarkets, consumers in the domestic Chinese and seaborne Asian markets are finding it difficult to secure adequate feedstock in battery-grade lithium hydroxide, which is sending prices higher.
The update reported that China’s consumers “are still struggling to secure units at the moment while demand is ramping up at unexpected speed”.
Elsewhere, Fastmarkets said that spot lithium prices in Europe and the United States continued to climb, “thanks to support from tight availability of technical-grade compounds, ongoing logistic disruptions and an upward price trend in global lithium prices”.
Broader lithium industry pushes higher
The Global X Lithium & Battery Tech EFT (LIT) could be a useful measure of performance in the broader lithium sector.
The LIT ETF invests in the full lithium cycle, including companies that mine and refine the metal, through to battery producers and automakers. Top holdings include one of the world’s largest lithium producers, Albemarle and a China-based lithium battery producer, Eve Energy.
The ETF has positions in ASX-listed producers and explorers including Pilbara Minerals, Orocobre Ltd (ASX: ORE), Galaxy Resources Ltd (ASX: GXY) and Ioneer Ltd (ASX: INR). These four holdings account for a respective 1.23%, 0.92%, 0.71% and 0.21% of its net assets.
The LIT ETF has pushed ~3.4% higher in June, up 13.3% year-to-date and about 5.5% away from its February record all-time highs.
Its solid performance might reflect an increasing investor appetite for renewable materials and solutions, which sits well with the soaring Pilbara Minerals share price.
The post The Pilbara Minerals (ASX:PLS) share price smashes another record high appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pilbara Minerals right now?
Before you consider Pilbara Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- Here’s why the Ioneer (ASX:INR) share price is charging 11% higher
- Here are 3 ASX 200 shares that are on the move today
- Why the Vanadium (ASX:VR8) share price surged to a 2-year high today
- Why the Pilbara Minerals (ASX:PLS) share price is up 7% to a record high
- These ASX 200 shares are on the move today
Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3wRfo60
Leave a Reply