Allkem Ltd (ASX: AKE) shares were out of form in 2023.
Over the course of the year, the lithium miner's shares lost approximately 12% of their value.
But considering some of the declines in the industry, this wasn't a bad outcome for investors.
Though, that's not the full story.
It is worth noting that Allkem shares were suspended from trade from 21 December in relation to its merger with Livent Corp (NYSE: LTHM).
The following day, Arcadium Lithium (ASX: LTM) shares commenced trade on the ASX boards on a deferred basis.
They then went on a strong run and ended the year at $11.21, which was just a touch lower than where Allkem shares started 2023.
So, all in all, you could call it a flat year for shareholders, which isn't bad all things considered.
What could be in store for Allkem shares in 2024?
Firstly, Allkem shares are no more, so there's no outlook for them.
But what about Arcadium Lithium shares? Well, they haven't started 2024 in an overly positive fashion.
In fact, following a sharp decline by Livent Corp's shares overnight, Arcadium Lithium shares are down 8% to $10.01 this morning. This stretches their year to date decline to over 9%.
What happens from here is likely to be driven by lithium prices. If prices rebound strongly in 2024, then lithium shares could rally.
However, many analysts are expecting the lithium market to be in surplus for the next two years due to an oversupply of the battery-making ingredient. This could mean that prices are held down for longer, which may not bode well for the industry.
Though, it is worth remembering that a lot can change in a short time in the mining sector. So, there's always a chance for a surprise, but I certainly wouldn't bet big on it happening.
