Why is the Pilbara Minerals share price having such a stellar session?

What's making investors buy this lithium share today?

| More on:
A man sees some good news on his phone and gives a little cheer.

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

The Pilbara Minerals Ltd (ASX: PLS) share price is ending the week on a positive note.

In afternoon trade, the lithium miner's shares are up 3% to $3.75.

Why is the Pilbara Minerals share price rising today?

Investors have been bidding the company's shares higher today despite there being no news out of it.

However, it is worth noting that a number of ASX lithium shares are finishing the week strongly.

This appears to have been driven by the release of the quarterly results of lithium giant Albemarle Corp (NYSE: ALB).

What did Albemarle report?

Albemarle's result was actually a bit of a shocker, though this was widely expected to be the case due to falling lithium prices.

The lithium giant reported third-quarter net income of US$302.5 million, which is down 66% on the prior corresponding period.

Looking ahead, management revealed that net sales are now expected to increase approximately 30% to 35% year-over-year, with adjusted EBITDA now expected to be flat to slightly down year-over-year. This is lower than previous guidance.

While this sounds like bad news for the Pilbara Minerals share price, there was something else that caught the eye of the market.

Albemarle downgraded its earnings because it is now expecting its lithium sales volumes to be lower than planned. The market may see this as a positive for lithium prices. After all, if less lithium enters the market, then prices could rebound quicker. Especially during a time when lithium demand has been softening.

Whether this proves to be the case, only time will tell. But it certainly could be worth keeping a close eye on the lithium market in the coming months.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Materials Shares

A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.
Materials Shares

Why did the Core Lithium share price just hit a 2-year low?

Top broker Goldman Sachs says falling lithium commodity prices may hit Core Lithium particularly hard.

Read more »

A cute little boy, short in height, wearing glasses, old-fashioned bow tie and cardigan stands against a wall near a tape measure with his hand at the top of his head as though to measure his height.
Broker Notes

Are ASX short sellers right about Pilbara Minerals shares?

Let's see what some of the big brokers think.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

What are brokers saying about the BHP share price?

This mining giant's shares are having a strong month. Can the run continue?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Which ASX lithium stock has soared 246% in just a month?

IPO investors are rubbing their hands in delight.

Read more »

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

What is the outlook for ASX lithium shares in 2024?

How are things looking for these miners?

Read more »

a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.
Materials Shares

What will the lithium price be in 2024?

Will lithium prices continue to fall next year?

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

5 ASX lithium shares to buy next week

Analysts think these could be the shares to buy if you want exposure to lithium.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Materials Shares

If I invest $10,000 in Pilbara Minerals shares, how much passive income will I receive in 2024?

Is this lithium miner a good option for income investors?

Read more »