Lithium hydroxide prices continued to fall amid lacklustre trading

For the week ending December 14, the supply and demand of lithium hydroxide were both low, leading to lacklustre trading. As the prices of lithium hydroxide continued to fall, some smelters scaled back production or halted operations, liquidating their raw material inventories to recover funds. Cathode producers have secured their daily requirements through long-term contracts with upstream smelters and thus were not interested in spot purchases. Moreover, battery cell manufacturers have been demanding substantial discounts from cathode suppliers, some of whom are transferring these cost pressures up the supply chain, pushing smelters to reduce their prices.