The ASX 200, and the All Ords faced a slight decline on Wednesday, with dips of 0.3%, and 0.27%, primarily led by the banking and energy sectors. With ASX financials retreating 1.46%, and Energy losing 1.41%, it was left to Minerals (+1.67%) to lead the day in green, particularly in the lithium segment.
This rally among lithium stocks was sparked by reports that China’s CATL, a leader in electric vehicle (EV) battery manufacturing, may suspend operations at two lepidolite mines. Lepidolite is a lithium-rich mineral, making these mines critical for lithium carbonate production. If CATL goes ahead with the suspension, it could reduce China’s lithium carbonate output by an estimated 8%. The news sent shares of major lithium producers upward, with Pilbara Minerals (ASX:PLS) and Liontown Resources (ASX:LTR) each experiencing a 15% surge.
Notably, Mineral Resources (ASX:MIN) outperformed, with an exceptional 17% jump following news of the Foreign Investment Review Board’s approval for the company to sell a 49% stake in its Onslow Iron haul road. The agreement, involving Morgan Stanley Infrastructure Partners, suggests a transaction value of around $1.3 billion. Pilbara Minerals (PLS) also offered up 13% in gains, with Liontown Resources (LTR) 13.11% in the green, and others in the sector also delivered double digit percentage gains on the day.
Outside of the mining sector, energy stocks took a hit after Brent futures fell by 3% to go below US$70 a barrel for the first time in over two years. This decline in oil prices was attributed to worries over an oversupply and signs of a slowing U.S. economy, leading to a sell-off in related stocks.
Despite the general downturn, these updates depict a dynamic landscape within the ASX, underscored by strategic manoeuvres in the mining sector and significant developments for certain stocks amidst the broader market’s challenges.
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