ASX 200 mining shares rip as lithium makes a comeback

Lithium miners had a spectacular week, with the Pilbara Minerals share price soaring 30% in just 5 days.

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Key points

  • ASX 200 materials shares, including lithium producers Pilbara Minerals, IGO, and Liontown Resources, surged due to rising lithium prices driven by renewed global battery demand, contributing to a 3.77% sector gain.
  • Gold stocks outperformed significantly, buoyed by a strong gold price amid a softer US dollar and US Government shutdown, with Northern Star Resources and Evolution Mining shares seeing notable increases.
  • ASX copper shares including Sandfire Resources and Capstone Copper also rose, supported by a 27% year-to-date increase in the copper price due to energy transition demand.

ASX 200 materials shares lead the market sectors last week, lifting 3.77% mainly due to mining stocks — particularly lithium producers.

Pilbara Minerals Ltd (ASX: PLS), IGO Ltd (ASX: IGO), and Liontown Resources Ltd (ASX: LTR) shot the lights out, soaring 30%, 35%, and 44%, respectively, on the back of higher lithium prices due to renewed global demand for batteries.

Energy shares had a third consecutive week of strong gains, rising 1.91%, while the technology sector tumbled heavily, down 9.36%.

The benchmark S&P/ASX 200 Index (ASX: XJO) was weak, falling 1.54% over the five trading days to close at 8,634.5 points.

Only three of the 11 market sectors finished in the green.

Let's review.

ASX 200 mining shares higher on strengthening commodity values

Strengthened commodity prices boosted ASX 200 mining shares last week, with lithium seemingly experiencing a comeback.

On Friday, the Spodumene Concentrate Index (CIF China) Price was US$1,006 per tonne, up about 7% last week and up 21% over a month.

Analysts at Trading Economics said lithium prices were rising due to improving global demand for batteries and power infrastructure.

Six ASX lithium shares streaked to new 52-week highs on Friday.

The Pilbara Minerals share price ripped 30% to $3.82, IGO shares rose 35% to $6.73, and Liontown stock roared 44% higher to $1.47.

The gold price remained strong, although it continues to trade below last month's record high of above US$4,300 per ounce.

The gold price was trading above US$4,190 per ounce on Friday afternoon and heading for its best week in a month, up 4.7%.

The rise was driven by a softer US dollar and uncertainty given a lack of economic data due to the 43-day US Government shutdown.

The S&P/ASX All Ords Gold Index (ASX: XGD) rose 7.41% last week, vastly outperforming the S&P/ASX All Ords (ASX: XAO), down 1.38%.

The market's largest ASX 200 gold share, Northern Star Resources Ltd (ASX: NST) rose 8.87% to 26.50.

The Evolution Mining Ltd (ASX: EVN) share price leapt 8.54% to $11.57.

Newmont Corporation CDI (ASX: NEM) shares rose 7.89% to $138.10.

The iron ore price was relatively stable last week, slipping 1% to US$104 per tonne on Friday, and up 0.4% over the year to date.

The ASX 200's largest iron ore share, BHP Group Ltd (ASX: BHP) edged 0.23% higher to finish at $42.75 on Friday.

The Fortescue Ltd (ASX: FMG) share price increased 0.75% to $20.23 and Rio Tinto Ltd (ASX: RIO) shares lifted 2.18% to $131.85.

The Mineral Resources Ltd (ASX: MIN) share price ripped 19.22% to $50.74.

South32 Ltd (ASX: S32), which is buy-rated due to its exposure to surging silver, copper, and aluminium prices, rose 3.59% to $3.17.

ASX copper shares went higher as the red metal continued its ascension on the back of stronger demand amid the energy transition.

Copper closed at US$5.06 per pound on Friday, up 2.5% for the week and up 27% in the year to date.

The ASX 200's largest pure-play copper share, Sandfire Resources Ltd (ASX: SFR) rose 3.31% to $16.25.

Capstone Copper Corp (ASX: CSC) shares lifted 2.61% to $13.39 apiece.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Materials (ASX: XMJ)3.77%
Energy (ASX: XEJ)1.91%
Utilities (ASX: XUJ)1.16%
Industrials (ASX: XNJ)(0.17%)
Consumer Staples (ASX: XSJ)(0.2%)
Healthcare (ASX: XHJ)(0.24%)
Consumer Discretionary (ASX: XDJ)(1.46%)
Communication (ASX: XTJ)(2.45%)
A-REIT (ASX: XPJ)(2.58%)
Financials (ASX: XFJ)(4.89%)
Information Technology (ASX: XIJ)(9.36%)

Motley Fool contributor Bronwyn Allen has positions in BHP Group and South32. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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