Pilbara Minerals (ASX:PLS) share price on watch as lithium prices boom

Lithium auction prices rise again amid tight supply and strong demand.
The post Pilbara Minerals (ASX:PLS) share price on watch as lithium prices boom appeared first on The Motley Fool Australia. –

The Pilbara Minerals Ltd (ASX: PLS) share price could be a mover on Wednesday. This is after the company announced the results of its second lithium spodumene concentrate digital auction.

Battery materials exchange price surge

Pilbara Minerals launched a new sales and trading platform for its Pilgangoora project in March. The company saying it provides “flexibility to transaction by auction, tender process or bilateral sale.”

During the inaugural battery materials exchange (BMX) auction held on 29 July, Pilbara Minerals received 62 online bids. The bids ranged from US$700/dry metric tonne (dmt) to US$1,250/dmt free on board Port Hedland, for a 10,000 dmt cargo of spodumene concentrate.

On Thursday, Pilbara Minerals revealed the results of a second spodumene concentrate digital auction. The highest bid was almost double that of its July auction.

Pilbara Minerals said that it intends to accept the highest bid of US$2,240/dmt for the intended 8,000 dmt (spodumene concentrate 5.5%, free on board Port Hedland basis) cargo.

The company added:

…given the strong margins yielded through the BMX trading platform to date, Pilbara Minerals expects to channel more concentrate sales through the platform, including concentrate generated from the recommencement of the Ngungaju processing plant.

According to S&P Global, a China-based bidder said, “We started [bidding] at slightly over $1,100/dmt and we were expecting the price to hit a maximum of $2,000/mt. This [closing price] is a really crazy high one.”

A Chinese refiner also commented that “if we buy at this price, there will be no profit margin left for us.”

Pilbara Minerals share price takes a breather

The Pilbara Minerals share price has been consolidating around the ~$2.20 level since early August.

It has rallied 159% year to date and surged more than 600% in the last 12 months.

During this time, lithium prices have ballooned from multi-year lows to record highs.

In an update for the quarter ending in June last year, reporting agencies indicated spodumene prices in the range of US$410-423/dmt.

The post Pilbara Minerals (ASX:PLS) share price on watch as lithium prices boom appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pilbara Minerals right now?

Before you consider Pilbara Minerals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here are the 3 most heavily traded ASX 200 shares so far today

Lithium surge, Sydney Airport takeover, ACCC torches Qantas deal. Scott Phillips on Nine’s Late News

Here are the 3 heaviest trading ASX 200 shares on Monday

Here are the top 10 ASX shares today

Pilbara Minerals (ASX:PLS) share price up 6% on Monday as lithium prices hit record high

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!