SMM, Oct 10: Before the holiday, lithium hydroxide showed a slow downward trend: firstly, prices were already at a relatively low level, and the decline was slower compared to earlier periods; secondly, due to large-scale long-term contracts and customer supply from the demand side, there was little need for spot orders, resulting in only a few transactions during the traditional pre-holiday restocking period. Thus, with supply exceeding demand and large inventory levels, prices continued to fall. Additionally, pre-holiday research indicated that there was little adjustment in the discounts accepted by buyers and sellers for long-term and spot orders.
After the holiday, the lithium hydroxide market trend showed little change compared to before the holiday. Market transactions were relatively quiet, with few spot order transactions outside of long-term contracts between sellers and buyers. Although the market was somewhat influenced by lithium carbonate prices, there was no significant boost. In terms of production, most suppliers produced according to order plans, and although the shipping pace was adjusted for holidays, it remained relatively stable overall. Regarding market prices, due to factors such as inventory and shipping pressure, the supply side showed some willingness to hold spot order prices firm outside of long-term contracts, but in the overall oversupply situation, they had to lower quotes to facilitate transactions. The demand side showed little change after the holiday, with few inquiries or purchasing actions, mostly adopting a wait-and-see attitude at this stage.
Looking ahead, both supply and demand sides have a relatively pessimistic outlook for the market. Considering the continued weakness in downstream demand and the expected reduction in upstream production, lithium hydroxide prices are expected to continue a gradual decline at current levels.
