The Core Lithium Ltd (ASX: CXO) share price is in the red today despite no news from the company.
The company’s shares are currently swapping hands at $1.385, a 5.78% fall. In contrast, the S&P/ASX 200 Index (ASX: XJO) is rising 0.3% today.
So, what’s happening with Core Lithium today?
Lithium prices ease
The Core Lithium share price may be sliding today, but it is not the only ASX lithium share to fall. The Allkem Ltd (ASX: AKE) share price is 1.43% in the red, while Liontown Resources Limited (ASX: LTR) is descending 1.8%. Meanwhile, Pilbara Minerals Ltd (ASX: PLS) is falling 0.18%.
Lithium carbonate prices in China have eased to 482,500 yuan per tonne in recent days. Lithium prices have shown no movement in the past day, while they are down 3.02% in the past month.
This is a huge contrast to the trend in January, February, and early March. Between 4 January and 15 March, lithium carbonate prices surged 79% to 497,500 yuan per tonne. Trading Economics reported China production of lithium carbonate increased by 41% in March, easing supply concerns. In the past year, lithium prices have exploded by 436%.
Core Lithium is exploring the Finniss lithium project in the Northern Territory. Lithium is a critical component for the batteries used in electric vehicles (EV).
Core Lithium also recently entered a binding agreement with Newmont Exploration to acquire the Shoobridge project in the Northern Territory.
Core Lithium share price snapshot
The Core Lithium share price has surged 436% in the past year, while it is up 136% this year to date.
For perspective, the ASX 200 has returned more than 8% in the past year.
Core Lithium has a market capitalisation of $2.4 billion based on its current share price.
The post The Core Lithium share price is sinking 6% today. Why? appeared first on The Motley Fool Australia.
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More reading
- What are the 10 biggest ASX shares in the lithium space
- Here are the top 10 ASX shares today
- Why is the Core Lithium share price powering up 7% today?
- 3 ASX lithium shares that rocketed between 10% and 24% today
- Here are the top 10 ASX shares today
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.
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