For the Quarter Ending March 2022
Overall, the Lithium Fluoride market in the first quarter of 2022 remained bullish, identical to the last quarter, with severe tightness in the availability of Lithium Fluoride after Russia invaded Ukraine. According to the customs data, a significant portion of Lithium supplies were imported from Russia, and the sanctions impacted the supplies of Lithium Fluoride in the US domestic market. In addition, the Chinese benchmark offers for Lithium Fluoride increased by a significant margin. Due to safety concerns in the San Luis Potosi, a feedstock fluorspar mine in Mexico, has imposed force majeure, leading to a reduction in the production and contracts to consumers besides adding pressure to the production margins in the US market. As a ripple effect, the overall market sentiments strengthened the quotations staggered in the upward trajectory.
In the first quarter of 2022, the Chinese Lithium Fluoride market witnessed stagnant growth despite the resurgence of COVID and hindered market dynamics in China. In the first half of the quarter, overall sentiments were pressurized ahead of the Chinese Lunar new year holidays with constant participation of overseas players in the Chinese market against the logistical issues. The Chinese authorities took some strict preventive measures to curb the spread by imposing a strict lockdown against the persistent inquiries from the overseas market. Although evaluation in mid-March assessed by benchmark continued in the upwards rally, even though the cost support from the feedstock Anhy. Hydrofluoric Acid kept staggering in China. As a ripple effect, the FOB Guangdong discussion for Lithium Fluoride was settled at USD 128400 per tonne by the quarter ending.
The effort made for the paced transition toward cleaner energy has clearly described the tightness in the Global Lithium Hydroxide market. Due to the boosted demand against the constrained supplies, the constant growth in the feedstock quotations of Lithium Hydroxide since 2021. Although the cost support from the Hydrofluoric Acid remains stagnant, the inquiries remain consistent. At the same time, the sturdy stance of the European authorities over Russia’s invasion of Ukraine clouded the supply concerns for the essential raw materials used in the production of Lithium Fluoride.
Quarter Ending December 2021
In the fourth quarter of 2021, the Lithium Fluoride market in the North American region witnessed unprecedented growth throughout the quarter. This development is majorly caused due to the enormous demand outlook that outstrips the demand from the EV segment, and the inquiries were persistent from the downstream Lithium Hexaflurophospharte producers. After the COP 26 global conglomerates and players from the energy sector raced to ensure the long-term supplies for Lithium. As a ripple effect, the quotation for Lithium Fluoride in the US domestic market witnessed a growth of 18.48%, and the CIF New York discussion for Lithium Fluoride was settled at USD 76900 per tonne, during the quarter ending in December.
The Asia Lithium Flurode market observed a consistent growth since the mid of the third quarter due to numerous economic factors. The port congestion in Northeast Asia delayed the deliveries of Lithium Fluoride and orders piled up from the domestic and overseas buyers for the Chinese cargoes. Whereas, the rising sales of EV soared the demand from the downstream EV batteries segment after the global countries decided to pace up the transition towards a greener economy. Whereas a major player in China plans to expand the production of Lithium Fluoride by 6000 tonnes. As a ripple effect, the Lithium Fluoride prices soared by 33.61% in the fourth quarter of 2021, and the FOB Guangdong discussion for USD 95400 per tonne, in December.
In the fourth quarter of 2021, the South American Lithium Fluoride market witnessed an unprecedented hike after the COP 26 meeting held in Glasgow, and numerous EV battery manufacturers were eager to ensure long-term supplies. The Chilean authorities recently announced to form state-owned Lithium miners to manage the country’s Lithium Triangle. However, as the demand exceeded the domestic supply outlook it forced the producers to raise the quotations for Lithium Fluoride soared significantly in the fourth quarter of 2021.