The Allkem Ltd (ASX: AKE) share price is lifting in afternoon trade on Thursday, trading nearly 3% higher at $10.39 apiece.
Investors have bid the Allkem share price up today on no news, reversing a period of heavy losses.
In broad market moves, the S&P/ASX 200 Materials Index (ASX: XMJ) has spiked 75 basis points, whilst the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is up more than 1% today.
Returns for each this year to date are seen below.
What’s up with the Allkem share price?
Investors have been pushing Allkem shares around these past few weeks, sending them to former highs of $14.10 apiece on 30 May.
Since then, prices have crumbled and sellers have continued to drive the stock from that point until today’s session.
An announcement regarding its pricing and guidance added further fuel to the fire last week.
The company advised that it expects to receive 14% higher lithium carbonate prices on average this quarter compared to previous guidance.
However, lithium spodumene concentrate output is expected to fall between 2–4% short of guidance the company said.
The downgrade results “from the highly competitive Western Australian resources labour market and COVID-19 related requirements due to the delayed re-opening of the Western Australian border.”
Despite the outlook, the Allkem share price has caught buyers at the $10.13 level and prices continue surging north on a volume roughly 40% that of its 4-week average.
Allkem shares have tracked lower in 2022. Even with its struggles this year to date, the share price has still clipped a 76% gain in the last 12 months.