The Pilbara Minerals Ltd (ASX: PLS) share price is 3% in the red today.
However, in earlier trade, Pilbara shares tumbled 6.7% from $3.60 to $3.36 before recovering some of its losses. Pilbara shares are currently trading at $3.49, at last look.
Let's take a look at what could be impacting the Pilbara Minerals share price today.
Why are Pilbara shares falling?
Pilbara shares may be tumbling today, but it is not the only ASX lithium share on the decline. Other lithium explorers falling today include Core Lithium Ltd (ASX: CXO), down 3.17%, and Piedmont Lithium Inc (ASX: PLL), plunging 6.67%.
The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.86% today.
Lithium shares including Pilbara appear to be falling amid reports on a falling lithium price.
Lithium carbonate (99.5% battery grade) has descended 2.37% in a day to 288,000 Chinese Yen (US$41.9), Shanghai Metals Market data shows.
In the past four months, lithium prices have been cut in half, a report out of Bloomberg stated.
Meanwhile, in news out of Chile, all new lithium projects will now need to use a new lithium extraction method to reduce water losses.
Bloomberg reported this government measure may risk future supply from the nation, despite its huge reserves of lithium. Chile mining Minister Marcela Hernando said:
For us, any future development has to done with direct extraction.
Wider market turmoil could also be impacting sentiment in ASX lithium shares today. As my Foolish colleague Bernd reported this morning, the US Federal Reserve lifted rates by 0.25% overnight.
Commenting on the rate rise, Fed chair Jerome Powell said:
It is important that we sustain that confidence with our actions as well as our words.
We are committed to restoring price stability, and all of the evidence says that the public has confidence that we will do so.
The S&P 500 Index (SP: .INX) fell 1.65% on US markets on Wednesday, with the S&P/ASX 200 Index (ASX: XJO) also sliding today, down 0.55%.
US lithium giant Albermarle Corporation (NYSE: ALB) descended 3.06% overnight, however, in after-hours trade it rose 0.25%. Similarly, Livent Corp (NYSE: LTHM) dropped 2.87% on the New York Stock Exchange on Wednesday, but in after-hours trade lifted 0.89% into the green.
Pilbara share price snapshot
The Pilbara Minerals share price has lifted 12% in the last year. However, it has tumbled by 18% in the last month.
Pilbara has a market capitalisation of nearly $10.5 billion based on the current share price.
