SunSir: In the First Half of 2023, the Lithium Hydroxide Market Was Sluggish

Price trend

In the first half of 2023, the domestic market of lithium hydroxide first declined and then rose, and the overall trend was sluggish. According to the commodity market analysis system of SunSirs, the average price from domestic industrial lithium hydroxide enterprises was 553,333.31 RMB/ton on January 1, 2023, and the average price of domestic industrial lithium hydroxide enterprises was 332,500.00 RMB/ton as of June 30. The market fell 39.91% in half a year, and 29.75% lower than the same period last year.

Analysis review

According to the monthly rise and fall chart of lithium hydroxide from January to June 2023, the monthly price of lithium hydroxide in the first half of 2023 had a small rise, a large decline and an overall decline. The market situation rose in May and June, while other months fell. The largest decline was in April (29.93%) and the largest increase was in May (18.45%).

Price decline stage (January-April): the price of Lithium carbonate in the upstream dropped and dragged, the downstream demand was poor, and lithium hydroxide dropped by 53.46% from January to April

In January, the upstream Lithium carbonate operated weakly, which weakened the support for the lithium hydroxide market, and the domestic downstream purchase intention was not high. The deal was mainly just in needed, and the price of lithium hydroxide fell slightly. In February, the upstream lithium carbonate price fell, dragging down the market mentality. In addition, the domestic demand was weaker, and the actual market transactions were limited. Most of them were low price orders. The focus of lithium hydroxide negotiations was weaker. In March, the downtrend of upstream Lithium carbonate continued, and the support for lithium hydroxide weakened again. The manufacturers mainly delivered long-term orders, and the market buying atmosphere was depressed. Under the mentality of downstream enterprises buying up rather than buying down, the actual orders in the market were not good, and the market was weaker. The downturn in the upstream Lithium carbonate market continued in the first half of April, with insufficient support for lithium hydroxide. The market supply was relatively abundant, the demand side was light, and the mentality of the industry was poor. The high price transactions in the market were under pressure, and the weak market continued.

Price rise stage (May-June): the lithium carbonate prices rose, increased the support for the market, and downstream procurement was just in demand, with an increase of 29.13% from May to June

In May, the upstream lithium carbonate market rose mainly, and the lithium hydroxide market was strongly supported. The manufacturers mainly executed long terms orders. The enthusiasm of downstream inquiry was slightly improved, the price mentality of the industry was strengthened, the enterprise quotation rose, and the spot market was traded just in needed. In the first ten days of June, the cost support continued, driving the price of lithium hydroxide to keep up. The manufacturer mainly delivered long-term orders, and the downstream mainly followed up in needed. The market had a strong wait-and-see atmosphere.

Market outlook

In July, the domestic industrial lithium hydroxide market was weaker, the support from the upstream lithium carbonate was insufficient, the downstream purchased on demand, and the trading atmosphere in the spot market was light. Analysts from lithium hydroxide SunSirs believe that the domestic lithium hydroxide market is expected to be weak and stable in the short term, and more attention should be paid to the market news guidance.

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