It's been a great month for the Pilbara Minerals (ASX:PLS) share price

Shares in the lithium miner have rallied 50% in the last month.

| More on:
Miner with thumbs up at mine

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pilbara Minerals Ltd (ASX: PLS) share price has rallied 50% in the last month, marking a new all-time high of $2.46 on 11 August.

ASX lithium shares have been on a tear in recent weeks, supported by higher lithium prices and a steady flow of bullish news for the industry.

Latest lithium spot prices

Lithium prices continued to rally in China's domestic market in the week to Thursday 12 August, according to Fastmarkets.

It reported both traders and consumers along the battery supply chain actively topped up inventories, despite restocking activity normally taking place at the end of the month.

Further afield, Fastmarkets reported lithium spot markets in Europe and the United States were flat due to a typical lull over the summer period, with trade expected to pick up next week.

A recent Fastmarkets survey found that "battery supply chain participants have prioritised securing lithium in the second half of 2021, but nickel has also been a headache for sourcing directors, who are less concerned about cobalt supplies".

Of the 20 market participants surveyed, eight respondents ranked lithium as the battery metal most difficult to secure in the second half.

Pilbara shares leading the ASX 200 lithium rally

The Pilbara Minerals share price was the first ASX 200 lithium stock to break above its 2018 high of $1.15 during mid-January this year.

By comparison, Galaxy Resources Ltd (ASX: GXY) and Orocobre Ltd (ASX: ORE) only managed to topple 2018 highs in late July.

Is the Pilbara share price cooling off?

The Pilbara Minerals share price has made a slight pullback from its record highs, falling 4.9% between Thursday and Friday last week.

This pullback was broadly in line with its peers, including Galaxy Resources Ltd (ASX: GXY) and Orocobre Ltd (ASX: ORE). Their share prices also fell between 4-5% during the same period.

The recent pullback could be attributed to profit-taking. After all, Pilbara shares have surged 170% year-to-date and rallied around 613% in the past 12 months.

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.

More on Share Gainers

A happy elderly woman smiles and cheers as she looks at good investment news on her laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 notched up another record high this Thursday.

Read more »

Three shareholders climbing ladders up into the clouds
Share Gainers

11 ASX All Ords shares rising faster than Nvidia over the past year

Who knew? Here are the homegrown ASX companies outperforming Nvidia on share price growth over the past 12 months.

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why DroneShield, Imricor, IAG, and Sayona Mining shares are roaring higher

These shares are making investors smile on Thursday. Why are they rising?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

3 ASX All Ords shares rocketing over 10% today

Double-digit gains anyone?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Aussie Broadband, Harvey Norman, HMC, and Web Travel shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »

Three women cruise along enjoying ice-creams in the sunshine.
Best Shares

3 ASX 300 stocks up by more than 300% in a year

These stocks certainly add up to a triple treat.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors were pulled back down to earth this Tuesday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EML Payments, Gentrack, Regis, and Resimac shares are racing higher

These shares are outperforming on Tuesday. What's going on?

Read more »