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Mixed week for lithium stocks

Lithium stocks are continuing to receive a mixed reaction from investors in the wake of a Morgan Stanley report this week that suggested lithium prices would fall 45% by 2021.
Mixed week for lithium stocks Mixed week for lithium stocks Mixed week for lithium stocks Mixed week for lithium stocks Mixed week for lithium stocks

Albermarle closed lower again

Staff reporter

The forecast followed a report by Citi which had found supply concerns were more than priced in. 

It's been a topsy-turvy time for lithium companies, with share prices taking a hit in January after Chilean producer Sociedad Química y Minera de Chile (US:SQM) was allowed to up its production quota, prompting fears of the market being flooded.

Chemicals giant Albermarle (US:ALB) had another bad day on the New York Stock Exchange yesterday.

After falling more than 9% on Monday then regaining a little ground on Tuesday as it released its fourth quarter results, it lost a further 9.98% yesterday to close at US$100.43, an eight-month low.

The company had said on Tuesday it expected adjusted diluted earnings per share in 2018 to increase to between US$5-$5.40.

Australian-listed Argentine lithium producer Orocobre (AU:ORE) fell 5.8% in Australian trade today, whereas yesterday's big gainer, developer Pilbara Minerals (AU:PLS) lost barely any ground, having closed up almost 11% yesterday on news of Korean backing.

In Canada, Nemaska Lithium (CN:NMX) - which was trading at C$1.69 on Friday - lost a further 3.9% yesterday to close at $1.47.