Lithium Hydroxide Oversupply Intensified in February as Demand Growth Failed to Keep up with Supply Increment

Published: Mar 15, 2023 10:59

Source: SMM

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SHANGHAI, Mar 15 (SMM) – China’s lithium hydroxide output stood at 24,371 mt in February, up 15% MoM and 92% YoY.

SHANGHAI, Mar 15 (SMM) – China’s lithium hydroxide output stood at 24,371 mt in February, up 15% MoM and 92% YoY. From the perspective of smelting, although some large smelters reduced their production further due to insufficient supply of ore, the capacity ramp-up of new projects and production recovery after maintenance pushed up the overall output. From the perspective of causticisation, causticisation plants were keen on purchasing lithium carbonate to produce lithium hydroxide due to the big price difference between the two and strong demand.

Domestic lithium hydroxide demand stood at 14,454 mt in February, up 10% MoM and 29% YoY. The operating rates of ternary cathode material factories picked up slightly in February as end demand recovered mildly. Lithium hydroxide demand is forecast to rise 5% MoM in March, mainly contributed by growing orders from high-nickel ternary material plants.

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