Price trend

The lithium hydroxide market rose strongly in 2022. The price of lithium hydroxide market rose sharply in 2022, and the market weakened at the end of the year. According to the monitoring data of SunSirs, the average price of industrial lithium hydroxide of domestic lithium hydroxide enterprises was 216,666.67 RMB/ton on January 1, 2022, and the average price of industrial lithium hydroxide of domestic lithium hydroxide enterprises was 553,333.31 RMB/ton as of December 22, up 155.38% during the year.

According to the monthly rise and fall chart of lithium hydroxide from January to November 2022, lithium hydroxide rose more than fell in 2022, and fell slightly in April and May, and the market price ran smoothly in July and September. It rose in other months, with the largest increase in February (52.73%) and the largest decrease in April (-1.81%).

Phase I (January to March): With the support of cost and supply and demand, lithium hydroxide rose strongly

According to the monitoring of SunSirs, the price of lithium hydroxide was 216,666.67 RMB/ton on January 1, 2022, and 478,666.66 RMB/ton as of March 31, with an increase of 120.92% in the cycle. In January, the price of raw material spodumene was at a high level, the price of lithium carbonate kept rising, and lithium hydroxide actively kept up with the increase of raw materials. In addition, the supply and demand performance was good, and the market rose. In February, the cost support was strong, the overall market operating rate was about 60%, the supply side was tight, and the market was still rising. In March, the price of raw materials was at a high level, the demand for lithium hydroxide from downstream high nickel manufacturers increased, and the price of lithium hydroxide rose steadily.

PhaseⅡ (April to September): The market first suppressed and then rose, with overall slight rise

In April, the upstream lithium carbonate market weakened, some manufacturers released new capacity, the overall supply increased, the domestic downstream spot purchase demand slowed down, the performance of high nickel was poor, and the domestic industrial lithium hydroxide market was loose at a high level. In May, the domestic market demand was weak and the market was weak. In June, the price of lithium carbonate in the upstream increased slightly, supporting the lithium hydroxide market and increasing the market supply. The enthusiasm of inquiry in the downstream increased slightly, and the market was stable and rose. In July, the domestic industrial lithium hydroxide market was stable. In August, cost support was strengthened, and some enterprises raised prices. Prices ran smoothly in September.

Phase Ⅲ(October to November): Driven by the rise of lithium carbonate in the upstream in October, the supply and demand support was strong in November, and the price rose

According to the monitoring of SunSirs, the price of lithium hydroxide was 481,666.66 RMB/ton on October 1, 2022, and 580,000.00 RMB/ton as of November 30, up 20.42% in the cycle. In October, the upstream lithium carbonate price continued to rise, the support for lithium hydroxide increased, the market spot supply was tight, the downstream ternary high nickel demand rose steadily, and the downstream lithium based grease market procurement was dominated by just demand, combined with good export orders, the market rose. In November, the spot supply of the market was short, the production scheduling of downstream enterprises increased, and the focus of market negotiation moved up.

In December, the domestic industrial lithium hydroxide market weakened

Since December, the upstream lithium carbonate trend has declined, the demand side is slightly weak, the trading atmosphere in the spot market is flat, and the lithium hydroxide market has declined.

Market outlook

The lithium hydroxide analysts of SunSirs believe that, at present, due to the downward drag of the upstream lithium carbonate market, coupled with the light trading atmosphere in the domestic spot market, the mentality of the industry is under pressure. Under the general support of supply and demand, the domestic lithium hydroxide market is expected to be sorted out weakly in the short term, and more attention should be paid to the changes in the upstream lithium carbonate market.

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