Lithium Fluoride Market Faces Decline Amidst Weak Demand and Supply Disruptions

Texas, USA: The Lithium Fluoride market noted a further decline in March 2024 after observing stability over the past few weeks. During March, the prices of Lithium Fluoride decreased slightly in the US domestic region due to low consumer demand. The Lithium Fluoride market in the USA was heavily influenced by the Chinese market. However, during this time, fluctuations in raw materials such as lithium carbonate and lithium hydroxide were registered. As the holiday period ended in China and other Asian markets, consumers started restocking their inventories.

Additionally, the influence of lithium carbonate futures performance on the Guangzhou Futures Exchange in China also supported the price increase of raw materials of Lithium Fluoride. In recent developments, according to the 2024 tariff adjustment plan announced by China's Ministry of Finance, the country will eliminate its 2% import tariff for lithium carbonate starting from the beginning of 2024. All these factors positively influenced the upstream lithium carbonate market across the nation and eventually impacted the Lithium Fluoride market.

In terms of domestic demand, the consumption of Lithium Fluoride has remained moderate due to an oversupplied market. Although in 2023, electric vehicle (EV) sales in the United States soared to unprecedented levels, they fell short of projections by as many as 800,000 units, despite achieving a new record. The domestic supplies of Lithium Fluoride were high domestically due to heavy procurement in the past and sluggish consumption. Additionally, few consumers were still procuring as EV sales continued to grow.

However, due to a drought in the Panama Canal, significantly fewer ships can navigate through the canal. Shipping times increased because of problems with getting supplies from the Middle East. So, instead of taking the usual route, ships had to go around the southern tip of Africa, making deliveries take longer. As a result, the shipments of lithium salts including Lithium Fluoride have been delayed.

According to industry experts, consumers are hesitant to acquire large quantities of Lithium Fluoride at elevated prices from downstream and terminal markets. Since the start of this year, the adoption rates have been slowing down due to a range of economic factors. Additionally, rising competition with Chinese EV manufacturers has also impacted the profitability of US-based EV companies. With high-interest rates making the financing of expensive purchases even more expensive, buying with persistent inflation in other consumer goods, but optional electric vehicles worldwide may be slower than predicted.

As per the ChemAnalyst database, the prices of Lithium Fluoride are anticipated to exhibit a further decline in the upcoming weeks as the demand outlook is presumed to remain subdued.