How is the Vulcan share price performing against its sector this month?

The Vulcan Energy Resources Ltd (ASX: VUL) share price has been on a rollercoaster ride in June.

Several macroenvironmental factors such as extreme inflationary movements, aggressive rate hikes, and overall bearish sentiment have impacted global markets.

Nonetheless, the clean lithium developer’s shares finished 26.8% higher to $6.34 at Friday’s closing bell.

The relatively large share price gain came off the back of some heavy losses in the weeks prior.

Below we take a look at the company’s recent performance and compare it to its sector this month.

What’s dragging down Vulcan Energy shares in June?

Investors offloaded the Vulcan Energy share price after Goldman Sachs released a shock analysis of the battery metals market.

The broker forecasted that lithium prices will sink to US$16,000 per tonne sometime in the next year.

Currently, lithium carbonate is fetching around US$71,000 per tonne.

Furthermore, economists from major banks predict that a recession in the United States will happen in early 2023.

This is due to the Federal Reserve’s intention to quickly ramp up interest rates to cool down inflation.

On 10 June, the United States released its consumer price index report. The report indicates that inflation rose 8.6% in May. This is above the 8.3% forecast and is at its highest level in 41 years.

When the central bank tightens up its monetary policy, investors historically jump ship to better risk and reward alternatives.

How does the Vulcan Energy share price compare with its sector in June?

Since the beginning of the month, the Vulcan Energy share price has tumbled 22%.

Notably, the company’s shares hit a 52-week low of $4.76 last Thursday before rebounding sharply the following day.

In contrast, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) fell 0.16% to 5,233.5 points on Friday. This represents a decline of almost 14% in June so far.

Shares in Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) are also down 24% and 31%, respectively.

Based on today’s price, Vulcan Energy commands a market capitalisation of roughly $834.63 billion.

The post How is the Vulcan share price performing against its sector this month? appeared first on The Motley Fool Australia.

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More reading

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• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher
• ASX 200 midday update: Qantas’ market update, lithium shares rebound
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• Vulcan share price on watch amid landmark $76 million automaker investment

Motley Fool contributor Aaron Teboneras has positions in Pilbara Minerals Limited. 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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