Tight Supply of Lithium Hexafluorophosphate Uplifted the Offers in China

In January 2022, the China Lithium Hexafluorophosphate market observed a significant boost in the producer’s pricing quotations due to the tightened supply of raw material and several upstream commodities to manufacture lithium Hexafluorophosphate. Currently, China is facing the peak heating season and the release of the reserves of LNG coupled with the restricted availability of coal led to the power rationing in China. A major Lithium Hexafluorophosphate supplier informed us that the Chinese authority is performing an energy rationing policy, large-scale power rationing across China, during the peak heating season will affect the raw materials keep rising in the forthcoming period.

In addition, due to the upcoming spring festival in China dated 31^st January 2022 - 06^th February 2022 the Chinese domestic logistics will stop receiving the goods consignments on 20^th January and international express will stop after 26^th January. In response, the overseas and domestic inquiries soared drastically for Lithium Hexafluorophosphate in the Chinese domestic market to ensure the consistent supply of Lithium from the downstream Electric Vehicles industry. Whereas, due to the upcoming Winter Olympics in Beijing China several market experts anticipate that the environmental protection policy and dual control on energy consumption will likely be strictly imposed on the manufacturing facilities ahead of the games. Therefore, it has been anticipated that the prices of Lithium Hexafluorophosphate will soar drastically post-holidays and Olympics along with huge competitiveness in the market to procure the consignment.

As per ChemAnalyst, the pricing offers for Lithium Hexafluorophosphate witnessed unprecedented growth in the fourth quarter of 2021, the producer's offers at Ex-Works Qingdao soared by 37.15% on a quarter-on-quarter basis to Q4 average discussion settled at USD 90950 per tonne.