ASX lithium shares from producers to explorers are surging across the board on Friday. This follows firmer prices and demand for battery-grade lithium, as well as a positive flow of news from individual lithium companies.
Lithium prices continue to push higher
Fastmarkets provides updates and commentary for recent lithium price movements. Its most recent update for the week ended Thursday 1 April highlighted:
- Lithium prices in China rise on active restocking while supply remains tight;
- Seaborne Asian lithium prices tick up on persisting tight availability;
- European and US prices post further gains on firm prices for technical-grade material.
It noted that lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price range in China rose to 88,000 to 92,000 yuan (A$17,580 to A$18,380) per tonne on 1 April, up from 85,000 to 90,000 yuan (A$16,980 to A$17,980) the prior week.
Fastmarkets also said the supply for lithium carbonate was more challenging than lithium hydroxide. A consumer was quoted as saying:
In March, producers were not willing to make large sales because supply is quite tight; moving into April, they are increasingly less willing to sell because of the rapid rally of spodumene price.
A trader added:
The overall supply tightness is derived from the squeezed spodumene supply from Australia. Among all, supply tightness for lithium carbonate is most acute.
ASX lithium shares breaking higher
ASX lithium shares, including Galaxy Resources Ltd (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE), have all managed to push higher into 2-3 month highs after being range-bound throughout February and March.
At the smaller end of town, explorers have been pushing out a stream of positive results, including:
- Neometals Ltd (ASX: NMT) up 5% on preliminary metallurgical results
- Core Lithium Ltd (ASX: CXO) announced that it had achieved the production of battery-grade lithium hydroxide monohydrate on Tuesday, and its shares have surged 8.50% higher today
- Jindalee Resources (ASX: JRL) jumped 35% higher today after a mineral resource estimate
- Piedmont Lithium Ltd (ASX: PLL) is 6% higher, with an announcement yesterday regarding a lithium resource estimate update
It seems ASX lithium shares are heating up on both higher prices and an anticipated surge in demand as the world focuses on cleaner technologies and net-zero emissions.
