For the Quarter Ending June 2022
The North American market for Lithium Hexafluoprophosphate maintains bullish sentiments throughout the second quarter of 2022. The retaliatory sanctions imposed on Russia by the U.S and the E.U has curtailed the supplies of the essential raw materials for the E.V. raw materials in the domestic market. The domestic players were forced to restrategize to source the raw material from other means. At the same time, several players in the E.V. market made necessary arrangements on a contractual basis to ensure the supplies of Lithium Hexafluorophosphate in the long run. In response, the competition amongst the domestic market participants has soared significantly, forcing the producers to hike the prices on the spot markets.
In the second quarter of 2022, the Lithium Hexafluorophosphate market in the Asia Pacific observed an enormous plunge after the consistent increment in the offered quotations since the first quarter of 2021. The COVID shutdown suppressed this development in the market dynamics in Northeast China, where most E.V. manufacturing facilities were concentrated. In response, the market condition forced the automotive players to either reduce production or temporarily shut down operations amidst the shortage of essential auto parts. The impact propagated into all the upstream value chains forcing producers to drop the quotations for Lithium Hexafluorophosphate in the Chinese domestic market.
In the second quarter of 2022, the Lithium Hexafluorophosphate market in Europe remained in the staggering upward trend. The retaliatory sanctions imposed on Russia by the U.S and the E.U has curtailed the supplies of the essential raw materials for the E.V. raw materials in the domestic market. The market players were hesitant to procure the Russian cargoes amidst the sanctions. Whereas COVID shut down in China provided adequate room for the European participants to obtain the shipments at feasible rates, most orders were delayed due to port congestion. Although due to the high inflation and high-interest rates, the overall market observes a significant dip in PMI of the Eurozone region.
For the Quarter Ending March 2022
In the first quarter of 2022, the Lithium Hexafluorophosphate sentiments in the North American region remained strengthened, and the gains were exceptional. The supply-demand imbalance of the Chinese domestic market dominated the global market dynamics, uplifting the benchmark prices, globally. In comparison, the sturdy stance of the US government over Russia jeopardized the supply of the raw materials amidst the sanction over Russia's invasion of Ukraine. As a ripple effect, the supply-demand gap widened, and the DDP USGC discussions for Lithium Hexafluorophosphate settled at USD 1350 per Kg during the quarter ending in March 2022.
Overall, the Asia Pacific region observed a significant gyration in the market dynamics as the sentiments were mixed in the first quarter of 2022. In the first half, the market remained bullish as the competitiveness surged after China's logistics had halted ahead of the Chinese Lunar New Year. The inquiries poured rapidly from the domestic and overseas market, and the deliveries lag time extended till March. The slower operational rates at the upstream facilities kept the operational rates suppressed amongst the Chinese producers and strengthened the will to increase the prices. However, due to the resurgence of COVID and government intervention, the unprecedented growth in the offers to some extent. The FOB Qingdao discussions for Lithium Hexafluorophosphate were settled at USD 96200 per tonne during the quarter ending March 2022.
During the first quarter of 2022, the Lithium Hexafluorophosphate in the European market persistently hiked due to the tightened supply against the extraordinary demand from the EV batteries industry. The market competitiveness gained rapidly ahead of the Chinese Lunar New Year holidays as the arbitrage and logistics remained disturbed for two weeks. In the second half, the conflict erupted in the eastern European region that hindered the domestic production capabilities as the sturdy stance of the European authorities restricted its trade with Russia impacted the supplies of raw materials.
For the Quarter Ending December 2021
In the fourth quarter of 2021, the Lithium Hexafluorophosphate market in the North American region witnessed exceptional growth throughout the quarter. This development is majorly caused due to the enormous demand outlook from the EV segment that outstrips the supply outlook in the US domestic market. Whereas, the congestion induced due to the rising COVID cases from Northeast Asian ports and the limited availability of freight vessels provided additional cost support besides delaying the deliveries of raw materials. As a ripple effect, the offers for Lithium Hexafluorophosphate witnessed exceptional gains in the fourth quarter along with surpassing the projected margins by approx. 33%
The Asia Lithium 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 Hexafluorophosphate and orders piled up from the domestic and overseas buyers for the Chinese cargoes and the higher raw material prices strengthened the will of producers to raise the offered quotations. Whereas, the ramped-up transition towards a greener economy boosted the demand from the EV sector. Whereas a major player in China plans to expand the production of LiPF6 by 30,000 tonnes. As a ripple effect, the Lithium Hexafluorophosphate prices soared exponentially and gained by 10.71% in values during the fourth quarter of 2021, and the Ex-Works Qingdao discussion for USD 94100 per tonne, in December.
In the fourth quarter of 2021, the South American Lithium Hexafluorophosphate 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 and king of Lithium source for the production of batteries including Lithium Hexafluorophosphate, therefore the offers soared drastically in the fourth quarter of 2021 due to unprecedented demand outlook.