SMM Analysis On China July Lithium Hydroxide Imports & Exports And August Forecast

Regarding imports, as China is a major producer of lithium hydroxide, it has low reliance on overseas sources under the condition of oversupply. In the past three months, China's lithium hydroxide import volume ranged from 250 to 600 mt. It is expected that the import volume will remain low from Aug to Sep.
In terms of exports, according to customs data, China exported 9,096 mt of lithium hydroxide in July, down 36% MoM, up 5% YoY. Among this, exports to South Korea and Japan were 5,009 mt and 3,493 mt, accounting for 73% and 24% of China's total exports respectively, decreasing 52% and increasing 4% MoM, decreasing 15% and 55% YoY. The main reason is the slack season of overseas production and consumption in July, along with inventory reaching a certain level due to restocking actions from Mar to Jun, reducing the volume of orders. It is expected that due to the continued downward trend in lithium hydroxide prices and lower-than-expected sales of overseas vehicles, domestic demand for lithium hydroxide purchases will remain weak from Aug to Sep. However, exports are expected to increase after October due to rising overseas demand.