[SMM Weekly Review] Spot Lithium Hydroxide 5.5-5.8 Weekly Market Trend

This week, the decline in lithium hydroxide prices accelerated. On the demand side, there has been a slight increase in orders for some ternary cathode materials based on production schedules recently, but the overall growth is relatively small. Most purchases of lithium hydroxide are made through long-term agreements and customer-supplied materials, with fewer spot orders. On the supply side, most operating companies have maintained a relatively stable production pace, with generally high inventory levels. Meanwhile, there is a certain degree of pessimism about future demand. Therefore, in the face of continuous downward pressure on prices from downstream buyers, the stance of standing firm on quotes has softened, leading to a continuous decline in transaction discounts. Coupled with the significant drop in lithium carbonate prices and the weakening of cost support due to the decline in lithium ore prices, the market price of lithium hydroxide has fallen more sharply recently. Currently, given that there is no expectation of a substantial increase in demand, lithium hydroxide prices are more likely to fall than rise.