For the Quarter Ending June 2022
North America
During the second quarter of 2022, the Lithium Hydroxide in the US domestic market remained bullish. Constant Swidling of the benchmark pricing and robust growth in the trajectory made the US authorities restrategize by securing a made-in-America supply chain for critical minerals. The democrats announced significant investments to expand vital domestic minerals that break the dependence on China and boost sustainable practices. As the world transit toward a greener economy, global demand for the Lithium substitutes such as Lithium Hydroxide will soar steeply by 400-600% in the next several decades, with the inquiries from the EV market set to soar by 4000%.The overall supply in the domestic market tightened due to the retaliatory sanctions imposed by the US authorities on Russia. As a ripple effect, the supplies for essential raw materials were disrupted, resulting in an unprecedented drop in the offered quotations of Lithium Hydroxide dropped by -8.5% during Q2 2022.
Asia Pacific
In the second quarter of 2022, the sentiments toward Lithium Hydroxide in the Asia pacific market fluctuated throughout the quarter. This market development is majorly attributed to the slow market activities amidst the resurgence of COVID that halted production in the downstream industries that significantly impacted Lithium Hydroxide's demand outlook in the spot market. The pessimist sentiments prevailed across the suppliers in China that were further suppressed by the inspection of the Chinese authorities over the high market competition backed surge in offers that challenge the sustainable transition towards a greener economy. However, the market sentiments increased after the Chinese authorities released the restrictions by the second half of the quarter. As a ripple effect, the quotations at Ex-Shenzhen settled at USD 73190 per tonne, during the quarter ending June 2022.
Europe
In Q2 2022, the market sentiments toward Lithium Hydroxide across Europe have primarily been impacted by the conflict in the eastern European region and China's COVID lockdown. The producer's quotations observed consistent fluctuations, although the EV battery players in the European market reap the better netbacks as the EV production in China was sluggish amidst the lockdown across the region. At the same time, the European players were hesitant to pressure the Russian cargoes at the Black sea amidst the retaliatory sanctions on Russia, which presented a further shortage of other critical raw materials. Although the domestic demand outlook dominates against the supply despite the slumped EV production in the European markets led to the persistent bullish sentiments across the Eurozone. As a ripple effect, the quotations dropped drastically monthly, and DDP Antwerp discussions were settled at USD 74602 per tonne in May 2022.
For the Quarter Ending March 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2021
North America
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.
Asia Pacific
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.
Europe
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.
