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Can lithium keep rising while resources stocks are dropping?

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Can lithium keep rising while resources stocks are dropping?

Hi there, James and the Team! Why is the Resources Sector going down but Lithium seems to be going up, especially Pilbara Minerals? Thanks again Kim


Hi Kim,

The lithium stocks might reside in the Materials / Resources Sector but they are indeed running their own race due to the demand side of equation for respective “new & old” commodities:

  • The lithium stocks such as Pilbara (PLS) have been rallying on optimism towards future EV demand and in general a more eco-friendly world – the nickel stocks like IGO Ltd (IGO) have also outperformed strongly of late albeit not to the same degree as their fellow battery metal lithium.
  • More traditional older style commodities such as copper, iron ore and aluminium are struggling because the world is becoming concerned that central banks are threatening to push the global economy into a recession as they battle inflation plus Chinas fixation on a zero COVID policy isn’t helping matters as the worlds 2nd largest economy moves back into hibernation.


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Sandfire Resources (SFR) v Pilbara Minerals (PLS)
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