SMM data show that China’s lithium hydroxide output rose marginally month on month in July but was still 22 % lower year on year.
At the smelting end, ternary-cathode orders slightly exceeded expectations, allowing downstream and end-users to lift more product. Several producers adjusted output to match sales, and newly commissioned lines continued ramping up, pushing smelting-side output 2 % higher on the month.
In the causticization segment, a modest rebound in orders at a few plants lifted production by 8 %.
Looking ahead to August, limited demand growth is expected to prompt some lithium-salt producers to swing flexible lines toward carbonate output, trimming smelting-side volumes. Meanwhile, scheduled maintenance shutdowns at several causticization facilities will further reduce supply. Overall, lithium hydroxide production is forecast to fall 5 % month on month and 24 % year on year in August.
