ASX Short Sellers Focus on Uranium and Lithium as Market Rotates – Week 15

Highlights:

• Short interest surged across uranium developers and producers amid sector-wide declines.

• James Hardie recorded a sharp uptick in short interest after a controversial acquisition.

• Limited short covering observed, with fashion platform Cettire leading marginal easing.

Uranium-related companies continued to rank among the most heavily shorted on the ASX, with firms like Boss Energy (BOE), Paladin Energy (PDN), Deep Yellow (DYL), and Lotus Resources (LOT) experiencing heightened scrutiny. The energy sector faced intensified pressure amid declines in spot uranium pricing and geopolitical shifts affecting nuclear fuel markets.

Lotus Resources saw one of the steepest weekly increases in short interest, followed closely by Deep Yellow. Exploration-focused players such as Elevate Uranium (EL8), Aura Energy (AEE), and Bannerman Energy (BMN) were also targeted. The broadening of bearish sentiment beyond established producers highlights a shift in focus toward speculative exposures across the uranium supply chain.

A weakening commodity environment, coupled with geopolitical shifts in uranium procurement, has influenced this sector’s short positioning. These developments occurred even as the ASX 200 remained relatively flat, showing a divergence between index-level stability and sector-level stress.

Lithium Names Attract Renewed Shorting

Following a downward trend that extended into early February, short interest in lithium-exposed stocks rebounded. Pilbara Minerals (PLS) and Liontown Resources (LTR) recorded increasing pressure. Pilbara, having previously experienced elevated short positioning in mid-last year, is again among the top targets.

Mineral Resources (MIN), which holds diversified exposure across lithium, iron ore, and mining services, also experienced a notable increase. The trend may be related to broader price corrections within lithium markets and cautious sentiment regarding production outlooks.

While the sector is showing signs of normalization after earlier drawdowns, short positions remain notably elevated across multiple lithium producers. This shift in sentiment could reflect traders responding to near-term weakness or rotational positioning away from resource-exposed names.

Industrial and Consumer Names Under Watch

James Hardie Industries (JHX), traditionally a stable component of the ASX 200, experienced a marked increase in short activity. The building materials supplier recently announced the acquisition of Azek, a move that raised valuation concerns and resulted in a significant drop in share price.

In the consumer discretionary space, Domino’s Pizza (DMP) and IDP Education (IEL) continued to hold high short interest. These companies, sensitive to consumer demand and international mobility respectively, remain exposed to cyclical economic themes.

Cettire (CTT), a luxury fashion e-commerce platform, showed a decline in short positioning, marking one of the most covered names during the week. The reduction coincided with stronger-than-expected international performance, notably in the U.S. market.

Short Covering Remains Limited

While some names like Adriatic Metals (ADT), FBR (FBR), and Opthea (OPT) also experienced marginal easing in short interest, broad short covering activity across the ASX 200 remained subdued. This suggests a sustained defensive positioning by short sellers amid ongoing sector-specific headwinds.

Companies in the industrial, financial, and healthcare segments, including Neuren Pharmaceuticals (NEU), Healius (HLS), and Corporate Travel (CTD), saw modest changes but largely remained on short sellers’ radars.

Overall, uranium and lithium names led the changes in sentiment, with financials and discretionary sectors showing more stable short interest movement. The persistence of energy and materials among the most shorted highlights continued concentration of bearish positioning within commodity-linked equities.