Shares in the Aussie lithium miner have performed strongly in the last week
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The Mineral Resources Limited (ASX: MIN) share price has been rebounding in recent days. Shares in the Aussie lithium miner climbed 2.7% higher to $53.53 per share on Monday and are now up 4.9% in the last 6 trading days.
What’s been boosting the Mineral Resources share price?
There have been very few ASX announcements from the Aussie lithium miner since its full-year results release on 11 August. That hasn’t stopped the Mineral Resources share price from climbing higher in recent days.
One thing to always consider with commodity-based shares is how the underlying commodity price is tracking. In the case of Mineral Resources, that means looking at global lithium prices.
Lithium prices are currently sitting at 92,500 Chinese Yuan (CNY) per tonne, up some 98.9% since the start of 2021. That has helped boost ASX lithium shares like Mineral Resources higher throughout the year.
It’s been a similar story for rival miner Pilbara Minerals Ltd (ASX: PLS). Pilbara Minerals shares jumped 6.3% higher on Monday and are up 152.9% year to date while Galaxy Resources Ltd (ASX: GXY) shares are up 136.7% this year.
The Mineral Resources share price has seen strong, if more modest, gains. Shares in the lithium miner are up 39.2% this year and 83.5% in the last 12 months.
There have also been signs of positivity coming from abroad. Aussie lithium miners have reported strong realised average prices in recent results while global electric vehicle (EV) demand climbs.
Are there other factors at play?
Commodities shares globally have been on something of a rollercoaster in recent weeks. One key factor has been market speculation on the withdrawal of COVID-19 stimulus measures by the US Federal Reserve.
Volatility has been seen in commodities pricing as participants try to guess the next move by Jerome Powell and the Fed. That has had a knock-on effect for some ASX mining shares with the Mineral Resources share price still down 11.2% year to date.
Shares in the lithium miner have hit something of a purple patch in recent days and are riding on high commodities prices, greater investor optimism and recent FY21 results.
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Motley Fool contributor Ken Hall 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.