How does the Mineral Resources (ASX: MIN) share price perform during lockdowns?

Let's see how the Aussie lithium and iron ore miner performs under pressure

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The Mineral Resources Limited (ASX: MIN) share price jumped 2.15% higher on Tuesday to close at $60.30 per share. That's despite large parts of Australia still being subject to strict lockdown conditions.

Let's take a look at how the Aussie lithium and iron ore miner's value has changed during past lockdowns.

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Image source: Getty Images

How does the Mineral Resources share price perform during lockdowns?

While there have been multiple lockdowns across the country in the past 18 months, there are a few that particularly stand out. The countrywide shutdown in March 2020, Victoria's stage 4 restrictions from August to October 2020, and the current Sydney/Melbourne lockdowns.

Let's take a look back to February and March 2020. The S&P/ASX 200 Index (ASX: XJO) was in freefall. Borders slammed shut and investors were in panic mode as COVID-19 took hold. But the Mineral Resources share price weathered the bear market and climbed higher.

Shares in the Aussie miner closed at $40.48 per share on 8 January. While the rest of the market took a turn around 20 February, Mineral Resources shares had already dipped lower and were climbing back towards that $40 per share mark.

What about more recent lockdowns?

After this initial lockdown, the Victorian stage 4 restrictions came into place in August 2020 and lasted until the end of October. The Mineral Resources share price did fall lower in August but managed to lift 5.8% by the end of October.

This period of restrictions also coincided with climbing lithium and iron ore prices which were good for earnings.

That brings us to the current state of play. The Mineral Resources share price has rocketed 56.75% in 2021 so far. Since 16 June, when the first Bondi cluster case was detected, the miner's value has jumped 23.69% higher.

Once again, commodity prices appear to be the name of the game. Many in the market are forecasting a continued strong pricing environment for iron ore and lithium thanks to strong demand and supply deficits.

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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