The Mineral Resources Limited (ASX: MIN) share price is having a top run today.
Mineral Resources shares are up 2.1% and are currently fetching $89.255. This is an all-time high for the company. Earlier this morning, Mineral Resources shares hit $89.72 before slightly retreating.
Let's take a look at what is going on with the Mineral Resources share price.
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Mineral Resources share price lifts
Mineral Resources is not the only ASX 200 mining giant in the green today. BHP Group Ltd (ASX: BHP) shares are also up 2.2% today, while Rio Tinto Limited (ASX: RIO) shares are lifting 3.47%.
Mineral Resources has three iron ore hubs in Western Australia. The iron ore price lifted 1.25% overnight to US$101.15. Hope that China may shift away from its COVID-19 zero strategy appears to be impacting investor sentiment.
Commenting on the iron ore price, ANZ economist John Bromhead said in a research note:
Iron ore was dragged higher as sentiment was buoyed by the apparent shift in China zero-COVID strategy. However, weakness in the property sector persists. New home sales by the 100 biggest producer developers dropped by 26% y/y to CNY559bn in November, according to CRIEC data.
Mineral Resources is also exploring lithium and aims to become a top five hydroxide producer. The lithium hydroxide price is fetching US$85,000 a tonne on the London Metal Exchange. One lithium analyst recently tipped lithium hydroxide prices to reach $100,000 a tonne.
In quarter one of FY23, Mineral Resources converted 4,703 tonnes of lithium hydroxide. The company achieved an average realised lithium hydroxide price of US$79,288 a tonne for lithium hydroxide from Mt Marion.
Analysts at UBS have a buy rating on the Mineral Resources share price, my Foolish colleague Tristan reported yesterday. Lithium is used in electric vehicle (EV) batteries. Commenting on EV demand, analyst Dim Ariyasinghe noted near-term risks from China but remains positive on demand. He said:
However, our view on the medium-term and long-term remains positive and has actually increased due to additional policy support for EVs.
Mineral Resources share price snapshot
The Mineral Resources share price has soared 98% in the past year. In the last month, Mineral Resources shares have leapt 98% higher.
For perspective, the ASX 200 has returned more than 1.5% in the past year.
Mineral Resources has a market capitalisation of nearly $17 billion based on the current share price.
