Why is the Core Lithium share price in the red today?

The Core Lithium Ltd (ASX: CXO) share price is having a tough day on the market today.

Core Lithium shares are down 3.75% at the time of writing and are currently fetching $1.285. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 1.36% today.

So why is the Core Lithium share price struggling today?

Why are Core Lithium shares falling.

Core Lithium may be down today, but it is not the only ASX lithium share in the red. The Liontown Resources Ltd (ASX: LTR) share price is down 6.75% at the time of writing, while Lake Resources N.L. (ASX: LKE) shares are 4.57% lower. IGO Ltd (ASX: IGO) shares are also down 3.89%, while Sayona Mining Ltd (ASX: SYA) shares are falling 2.38%.

News out of China could be impacting ASX lithium shares on Monday. China is a major electric vehicle (EV) producer and there are concerns lithium prices could pull back amid a fall in demand, as my Foolish colleague James reported.

Further, the South China Morning Post reported yesterday that Chinese EV battery producers will exceed domestic electric car makers’ demands threefold by 2025. This may be further adding to concerns about falling lithium prices.

Lithium carbonate prices in China fell 0.53% to 562,500 yuan on Friday.

Meanwhile, unprecedented protests over COVID-19 restrictions have erupted in China over recent days amid the nation’s COVID-zero policy.

Also, lithium shares in the United States struggled on Friday. Sociedad Quimica y Minera de Chile (NYSE: SQM) lost 6.8%, while Livent Corp (NYSE: LTHM) shares fell a massive 8.81%.

The Core Lithium share price also fell 5.6% on the ASX on Friday amid fears COVID-19 restrictions in China could impact demand for lithium.

Share price snapshot

The Core Lithium share price has soared 138% in the past year, while it has climbed 118% in the year to date.

For perspective, the Resources Index has gained nearly 20% in the past year.

Core Lithium has a market capitalisation of more than $2.4 billion based on the current share price.

The post Why is the Core Lithium share price in the red today? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares getting slammed again on Monday?
• Why is the Liontown share price sinking 9% on Monday?
• Here are the 10 most shorted ASX shares
• Why is the Allkem share price diving 8% today?
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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