ASX lithium stocks avoid share price shock amid commodities lashing

Core Lithium and Allkem are outperforming their major ASX resources peers today.

| More on:
An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX resources shares are down today following a price lashing for multiple commodities overnight 
  • ASX lithium stocks are holding up well compared to their major ASX resources peers 
  • The relative stability of the lithium price is likely supporting ASX lithium stocks today

ASX lithium stocks such as Core Lithium Ltd (ASX: CXO) and Allkem Ltd (ASX: AKE) are outperforming the major ASX resources shares today following multiple commodity price falls overnight.

The Core Lithium share price is down 2.11% to 93 cents. The Allkem share price is down 4.3% to $9.57.

In comparison, the Rio Tinto Limited (ASX: RIO) share price is crumbling 5.83%, Fortescue Metals Group Limited (ASX: FMG) shares have dipped 4.97%, and BHP Group Ltd (ASX: BHP) shares are down 4.8%.

The Newcrest Mining Ltd (ASX: NCM) share price is falling 6.1%, and South32 Ltd (ASX: S32) shares are down 7.79%.

Looking more broadly, the S&P/ASX 200 Resources Index (ASX: XJR) is down 5.02% at the time of writing.

All of these price movements are likely tied to a price lashing for various commodities overnight.

Commodities dip but ASX lithium stocks hold up best

According to Trading Economics commodities data, the iron ore price rose by 0.88% overnight but is down 8.03% over the past week. The iron ore (62% Fe) price slipped 0.73% overnight and is down by 13.26% over the week.

The steel price finished flat overnight and is down 4.87% over the week. The hot-rolled coil (HRC) steel price is down 0.97% overnight and 18.21% over the past week.

South32 has significant exposure to alumina and aluminium, which might explain why its share price is falling most among this particular bunch of ASX resource shares. The aluminium price slipped 3.57% overnight and is down 4.62% for the week.

Commodities that are currently trading include copper, which is down 0.28% at the time of writing. The copper price has fallen 8.75% over the week. The gold price is up slightly by 0.4% but down 2.6% for the week. The silver price is up 0.27% today but down 6.96% over the week.

Meantime, the lithium carbonate price finished the session flat overnight. And over the past week, it’s down just a little — by 0.42%. (Fun fact: It’s up a whopping 434% year over year.)

The relative stability of the lithium price is likely supporting ASX lithium stocks today.

Motley Fool contributor Bronwyn Allen has positions in Allkem Limited, BHP Billiton Limited, and Fortescue Metals Group 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.

More on Resources Shares

A woman is excited as she reads the latest rumour on her phone.
Resources Shares

Obscure ASX mining share surges 29% following OZ Minerals copper deal update

Shareholders are set to vote on the proposal later this month.

Read more »

A futuristic view of electric vehicle technology with speeding bright light trails indicating power.
Resources Shares

New records and looming deficits. Why ASX lithium stocks are in the spotlight

Demand for lithium is booming alongside rocketing growth in EV production, sending the price of the battery critical metal up…

Read more »

Female worker sitting desk with head in hand and looking fed up
Resources Shares

Can the iron ore price regain its March highs in 2022?

Opinion is mixed on the outlook for the commodity.

Read more »

Young woman using computer laptop with hand on chin thinking about question, pensive expression.
Resources Shares

Down 20% in 6 months, what’s next for the BHP share price?

It’s been tricky for BHP shareholders recently. Can things turnaround?

Read more »

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery
Share Gainers

Here are 2 ASX lithium shares surging on new discoveries

Demand for lithium continues to see high realised spot prices, with a positive flow-on effect to ASX lithium stocks.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Resources Shares

Up 80% in a month, why is the Province Resources share price on ice today?

What's going on with the minerals producer’s stock? We take a closer look.

Read more »

A miner reacts to a positive company report mobile phone representing rising iron ore price
Resources Shares

Guess which ASX mining share is rocketing 55% on a new lithium find

Ragusa Minerals is getting ready for its maiden drilling program at its NT Lithium Project.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Still down in 2022, is the Fortescue share price now on the road to recovery?

Let's see what the consensus amongst analyst is.

Read more »