Price trend
According to the data from SunSirs’ bulk list, as of September 8, the average price of domestic industrial-grade lithium hydroxide from enterprises was 144,666.67 RMB/ton, an increase of 19.23% compared with the price at the beginning of the month, and an increase of 46.13% compared with the price on August 1, and an increase of 164.63% compared with the same period last year.
Analysis review
The lithium hydroxide market has been rising recently. In August, the raw material spodumene’s price tightened. Some smelters were in the maintenance period, the output was reduced, the cost support was strong and the demand side performed better, which led to the price increase. As the supply picked up, the demand side showed strong performance, export orders continued to increase, domestic spot supply was still tight, and the market continued to improve, with an increase of 21.89% in August.
Entering September, the lithium hydroxide market continued its upward trend. At present, the price of upstream spodumene continues to be high, the price of lithium carbonate continues to rise, and the cost support is still strong. There are many long-term contracts in enterprises, the supply of spot is limited, the downstream demand for industrial-grade lithium hydroxide is relatively stable, and the market is still willing to support the price. Enterprises offer high prices, and the lithium hydroxide market is running firmly.
In terms of indexes, the lithium hydroxide commodity index on September 7 was 342.06, an increase of 15.08 points from previous day, a decrease of 10.33% from the highest point in the cycle of 381.48 points (2016-09-12), and an increase of 242.06% from the lowest point of 100.00 points on September 4, 2014.(Note: Period refers to 2014-09-01 to present)
Upstream lithium carbonate, according to SunSirs data monitoring, recently, the price of industrial-grade and battery-grade lithium carbonate has risen. The average price of industrial-grade lithium carbonate in East China on September 7 was 127,400 RMB/ton, a 6.88% increase compared with the beginning of the month (the average price of industrial-grade lithium carbonate in East China was 119,200 RMB/ton on September 1). The average price of battery-grade lithium carbonate in East China on September 7 was 134,800 RMB/ton, a 7.32% increase compared with the beginning of the month (the average price of battery-grade lithium carbonate in East China was 125,600 RMB/ton on September 1).
Market outlook
Lithium Hydroxide Analyst of SunSirs believes that, on the whole, the current cost, supply, and mentality are still positive, and the demand side performance is acceptable. It is expected that in the short-term, the domestic industrial-grade lithium hydroxide market may continue to operate strongly, and the specific trend requires more attention to market news guidance.
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