Happiness has run out for the big boys as falls in the main commodities iron ore, copper, gold and aluminum disappeared during the night.
The materials sector rose by 4.75% for the week and fell by 0.35% in the middle of a generally weak day for the ASX 200.
It completes a major recovery driven by rising commodity prices, facing supply disruptions such as floods in Brazil (iron ore) and potential strikes in mines (copper).
Fortescue (ASX: FMG) recovered for a small gain after a drop on the open, but BHP (ASX: BHP) and Rio Tinto (ASX: RIO) were both in the red.
BHP’s performance will be closely monitored ahead of a vote on the merger of the separate British and Australian companies, which it has been pursuing since BHP took over Billiton in the early 2000s.
It stands to account for 10% of the ASX 200 if the move exceeds the 75% threshold required to succeed, a move that will spur purchases from index-linked active and passive funds.
Nickel prices rose again overnight to extend 11-year highs to $ 22,300 / h due to lack of stainless steel and increased demand for nickel in batteries.
With many of the price increases already spurring nickel stocks to multi-year or all-time highs, only IGO (ASX: IGO) was significantly in the green.
New all time high on the way for Core Lithium
Core Lithium (ASX: CXO) is one of the few lithium miners with an operation expected to go into production this year, a big thing given the massive supply shortfall that is occurring in the lithium area.
Core stocks rose 12.4% this morning without news and rose above 90c for the first time.
As the company has its head down by building its Finniss lithium mine in NT, the first in Oz outside WA, the radical purchase of its shares this month has been remarkable and revealing in investors’ enthusiasm for the energy metal.
Investors exercised 1,541,970 unlisted options at 45c per share, the company revealed today. Lucky them.
Core began construction of the Finniss in October last year, where 80% of its production was sold under four-year deals to Chinese lithium giants Ganfeng and Yahua.
The $ 89 million mine is expected to hit initial production in the December quarter, producing at a rate of 175,000 tpa.
Core Lithium stock price today: