(Bloomberg) -- Pilbara Minerals Ltd., Australia’s biggest pure-play lithium producer, said buyer interest in its material had picked up recently — offering a glimmer of hope for producers of the battery metal that have been hammered by plunging prices. Most Read from Bloomberg Nvidia Surges After Company Proclaims AI Has Hit 'Tipping Point' Biden Touts $1.2 Billion in Student Loan Relief With Eye to 2024 Tech Up in Late Hours on Nvidia’s Bullish Outlook: Markets Wrap China Tightens Grip on Stocks With Net Sale Ban at Open, Close Your 401(k) Will Be Gone Within a Decade The global lithium industry is grappling with the effects of the past year’s price collapse, from slumping profits to production cuts and spending reviews. Producers and investors are looking for any signs that demand and prices are steadying. “All our customers, for avoidance of doubt, are taking their product and, in some cases, asking for more,” said Pilbara Minerals’ Managing Director Dale Henderson. Enquiries from potential buyers have picked up, and “I think we’ve had more over the last eight weeks than we’ve had for quite some period,” he said. The moderately hopeful comments came after a flurry of Australian lithium producers reported weaker half-year earnings. Pilbara Minerals said underlying profit sank 78% to A$273 million ($179 million), while Mineral Resources Ltd. reported a 49% decline in underlying profit and IGO Ltd. said net income dropped 53%. Prices for lithium have showed signs of bottoming out in the past three months, but they are still about 80% lower than their record high in late 2022. Albemarle Corp., the world’s biggest producer, said last week that such levels were “unsustainable”. The current price is a floor and there will be incremental improvement during this year, Chris Ellison, Chief Executive Officer of Mineral Resources, said on a conference call Thursday. Most Read from Bloomberg Businessweek Hybrid Plug-Ins Are Booming in the World’s Biggest EV Market How Bad Movie Dubbing Led to the Fake Biden Campaign Robocalls US Citizens Become Collateral Damage in Global Sanctions Fight The Dangers of Relying on the US to Power the Global Economy Gene Therapy Makers Struggle to Find Patients for Miracle Cures ©2024 Bloomberg L.P.
Australia’s Pilbara Minerals Sees Signs of Lithium Slump Ending
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