SunSirs: Lithium Hydroxide Market Declined in March

Price trend

According to monitoring data from SunSirs, as of March 28, the average price of domestic industrial grade lithium hydroxide enterprises was 367,500.00 RMB/ton, a decrease of 16.48% compared to March 1.

Analysis review

The lithium hydroxide market fell in March. In the first ten days, upstream lithium carbonate continued its downward trend, with insufficient cost support for lithium hydroxide. Production starts at the supply side were relatively stable, and market supply was relatively sufficient. However, the demand side recovered slowly, and downstream follow-up was less than expected. The market atmosphere was weak, and corporate quotations had declined. In mid March, there was a lack of support on the cost side and demand side was weak. Manufacturers focused on delivering long-term orders mainly and current market transactions were limited, and lithium hydroxide prices fell again. In late March, cost support weakened again, and the market purchasing atmosphere was depressed. Downstream enterprises were in a buying up and not buying down mentality, resulting in poor market transactions and the market of lithium hydroxide continued to decline.

Upstream lithium carbonate: According to data monitoring by SunSirs, the prices of industrial and battery grade lithium carbonate significantly decreased in March 2023. As of March 27, the reference price for lithium carbonate - industrial grade was 240,600.00 RMB/ton, a decrease of 37.11% compared to March 1 (382,600.00 RMB/ton).

Market outlook

According to lithium hydroxide analysts from SunSirs, costs and demand were weak, the market transaction atmosphere was flat, and there was a strong cautious wait-and-see mentality. It is expected that in the short term, the domestic lithium hydroxide market may continue to be weaker, and more attention needs to be paid to market news guidance.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.