Lithium Hydroxide Weekly Market Trends 8.18-8.21 [SMM Weekly Review]

This week, lithium hydroxide prices saw a slower increase but continued to fluctuate at highs. Sentiment-wise, apart from long-term contracts, lithium chemical plants showed strong reluctance to sell spot orders, with quotations continuously rising; coupled with the fact that most upstream enterprises also have lithium carbonate capacity, they tend to link lithium hydroxide quotations with lithium carbonate futures and spot prices, further pushing up the quotation center.

Demand side, some ternary cathode material plants, due to reduced customer supply, turned to the spot market for restocking despite full order books. To ensure continuous production, there have been instances of purchasing at high prices, providing strong support for lithium hydroxide prices. Overall, the current supply-demand pattern is tight, and it is expected that in the short term, battery-grade lithium hydroxide prices will have limited downside room and will continue to hover at highs.

The latest customs data shows that in July, lithium hydroxide exports pulled back significantly MoM, mainly due to the recent low operating rates of overseas ternary cathode material plants. Based on the production schedules of overseas cathode producers, it is expected that in the short term, lithium hydroxide exports will continue to operate at low levels.