For the Quarter Ending March 2022
Overall, the global Lithium market observed a severe tightness in the availability of Lithium Hydroxide after Russia invaded Ukraine. According to the customs data, a significant portion of Lithium Hydroxide was imported from Russia, and a series of sanctions are likely to impact the supplies of Lithium Hydroxide in the US domestic market. In addition, the Chinese benchmark offers for Lithium Hydroxide increased by a significant margin. Therefore, the producer's quotations for Lithium Hydroxide consistently remained upward amidst the prolonged scarcity of supplies against the healthy demand from the downstream market. As a ripple effect, the DDP USGC discussions for Lithium Hydroxide were settled at USD 51000 per tonne during February 2022.
In the first quarter of 2022, the Lithium Hydroxide market in the Asia Pacific region observed several fluctuations in the market movement after the resurgence of COVID. The Chinese authorities took strict preventive measures to curb the spread by imposing a strict lockdown, including manufacturing activities. The spot offers from the traders and third-party dealers consistently climbed upwards as the market is currently facing severely short supply. Many players were anxious about the hike in the offers of Lithium Hydroxide. Although by evaluation in mid-March assessed, the upstream benchmark continued to rally upwards. As a ripple effect, the FOB-Shenzhen discussion for Lithium Hydroxide battery-grade was settled at USD 68900 per tonne in March-end.
In Q1 2022, 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 quotations of Lithium Hydroxide since 2021, and the offers observed growth of approx. 315% on a year-on-year basis. The sentiments uplifted amidst the Lunar New Year holidays in China, which supported the increment in the benchmark prices of Lithium Hydroxide coupled with the upcoming EV batteries project in the European market. As a ripple effect, the producer's quotations witnessed a persistent uptrend. The DDP Antwerp discussions for Lithium Hydroxide battery-grade were settled at USD 52200 per tonne in February-end.
Quarter Ending December 2021
In the fourth quarter of 2021, the offers for Lithium Hydroxide witnessed persistent gains throughout the quarter. This pricing growth is majorly attributed to the tightened supply outlook in the US market. In addition, the backlog of the shipping delays further supports the market tightness of Lithium Hydroxide in the domestic market. Whereas, the demand from the EV sector observed tremendous growth in the last quarter with proportionally Lithium Hydroxide offers witnessed a gain of 136% on a year-on-year basis. However, the DDP (UGSC) (USA) prices for Lithium Hydroxide fluctuated within a rangebound of USD 29500-31900 per tonne, during the quarter ending 2021.
During the fourth quarter of 2021, the Lithium Hydroxide market in the Asia Pacific observed growth of 254% on a year-on-year basis. This development is majorly attributed to the adequate increment in the strategic significance of Lithium from the downstream EV sector. In response, the supply-demand dynamics imbalanced, whereas the Chinese suppliers provided the support required to uplift the offers of Lithium Hydroxide in the Chinese domestic market. In addition, it is estimated that the Chinese EV market would likely witness a sharp growth next year. Therefore, due to the persistently growing gap between the supply and demand the CIF Northeast Asia discussion for Lithium Hydroxide assessed at USD 29900 per tonne.
In the first half of 2021, the European Electric Vehicles sector market observed growth of 160%. In addition, after COP 26 Glasgow, the EV manufacturers were struggling to ensure the long-term supply of Lithium amidst the rapid transition towards a greener economy. However, the ongoing energy crisis in Europe induced adequate hindrances besides the delayed shipments of Lithium Hydroxide from the overseas market. Therefore, the persistently growing supply-demand gap kept the Lithium Hydroxide offers in Europe buoyed and prevailed energy crisis presented some uncertainties in the upcoming demand outlook in the European domestic market.