Lithium prices could remain elevated for longer according to analysts at Macquarie equities.
ASX 200 lithium explorers include Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), Core Lithium Ltd (ASX: CXO) and IGO Ltd (ASX: IGO).
Pilbara shares are rising 2.14% today, while Core Lithium shares are leaping 4.20%. Mineral Resources shares are climbing 0.02%, while IGO shares are descending 0.63%.
Let’s take a look at the outlook for the lithium price.
What’s ahead?
Lithium prices can weigh on company earnings and hence the share price of ASX 200 lithium shares.
Analysts at Macquarie Bank Ltd (ASX: MBLPC) are optimistic lower lithium supply amid development delays and capex upgrades could be a positive for the lithium price, The Australian reported.
Macquarie’s team is positive on ASX 200 lithium shares Mineral Resources and IGO, while it is also impressed with Pilbara’s “full lithium exposure” via its Pilgangoora operation in WA.
Commenting on lithium supply, the Macquarie equities team said:
A struggling lithium supply could keep lithium prices higher for longer, a silver lining for the lithium industry.
Pilbara delivered a 10% increase in spodumene concentration production in the December quarter to 162,151 dry metric tonnes, as my Foolish colleague James reported last week.
Meanwhile, Argosy Minerals Ltd (ASX: AGY) has also shared an upbeat outlook for lithium in today’s quarterly activities report.
In comments today, Argosy highlighted the “growing expectations across the market that supply will remain tight over 2023”.
Significant growth in EV sales remains the most material driver for future lithium demand.
Share price snapshot
Pilbara Minerals shares have surged 56% in the last year, while Core Lithium shares have soared nearly 61%.
IGO shares have leapt 33% in the last year, while Mineral Resources shares have exploded 71%.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has soared nearly 14% in the last year.
The post Why lithium prices could be ‘higher for longer’: Macquarie appeared first on The Motley Fool Australia.
FREE Beginners Investing Guide
Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…
For over a decade, we’ve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.
Yes, Claim my FREE copy!
*Returns as of January 5 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Why Block, Core Lithium, Lynas, and Xero shares are charging higher today
- These are the 10 most shorted ASX shares
- Core Lithium share price marches higher as key quarterly milestones achieved
- Pilbara Minerals share price ‘offers strong growth potential’: expert
- Top brokers name 3 ASX shares to buy next week
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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/T9HBPRn
Leave a Reply