Lithium Prices Show signs of Recovery in Japan and South Korea in July 2022
- 28-Jul-2022 4:36 PM
- Journalist: Nina Jiang
Singapore: In July 2022, the Lithium market in the Asia Pacific region observed a significant surge in the offered quotations and the valuation for the key battery raw materials such as Lithium Carbonate and Lithium Hydroxide it has gained in value. According to the ChemAnalyst pricing intelligence, the offers for Lithium Carbonate observed an average increment of +1.25% on a month-on-month basis. At the same time, due to the lack of Russian rare earth metal supplies, the battery makers were seeking to hike the prices amidst the disruption of the supply chain in the Northeast Asian region. In response, it will likely weigh on the Lithium market in Japan and South Korea.
In addition, by monitoring the market changes after the Chinese authorities revoked the COVID restrictions, it has been observed that supplies of Lithium Carbonate in the domestic market increased significantly, and the manufacturers majorly responded to the long-term contractual inquiries on a priority basis. Furthermore, to uplift the dynamics for Lithium Carbonate at the spot market, the traders raised the quotations slightly. Furthermore, most of the actual transactions have been negotiated one on one.
The downstream Lithium Hydroxide prices in the Northeast Asian region remained stable. The market transactions for Lithium Hydroxide were light compared to the pre-shutdown period against the stable operations at the manufacturing facilities. Although overall supply in the Chinese domestic market has observed a marginal change amidst the rigid production to maintain the pre-order supplies.
The downstream Lithium Hexafluorophosphate and Lithium Ferrous Phosphate markets were operating smoothly with mostly just-needed procurement with a general atmosphere, and the overall supply remained pressurized. The number of new inquiries from the domestic and overseas market remains limited, and the producers were keener to cater to contract customers actively. The overall market negotiation atmosphere was average and acceptable at the spot market.
As per ChemAnalyst,” the Lithium market in the Northeast Asia region will maintain a persistent upward trend in the forthcoming period, as the demand showcases healthy sentiments from the domestic and overseas markets. At the same time, the limited inquiries from Lithium Hexafluorophosphate and Lithium Ferrous Phosphate are under pressure, although the demand will improve shortly.”