SHANGHAI, Jun 22 (SMM) — Rising price of lithium hydroxide has left downstream material factories struggling. Some companies, who see further rise in raw material prices, have set their sights on production of lithium hydroxide through causticising process. With widening price gap between lithium carbonate and lithium hydroxide and high lithium carbonate inventory, some companies may purchase lithium carbonate and cooperate with causticising companies for production of lithium hydroxide so as to reduce raw material costs.
As demand for lithium hydroxide is expected to increase significantly in H2, leading manufacturers have expanded their capacity.
Ternary material output is expected to jump 46.6% in H2 when compared with H1, which will boost demand for lithium hydroxide.
Large smelters have raised quotation of lithium hydroxide to 100,000 yuan/mt. A small amount of domestic and overseas transactions have been made.
Some causticising manufacturers will release their production capacity quickly, which is expected to reduce lithium carbonate inventories significantly and prevent prices from falling.