China's Lithium hydroxide Output In September And Forecast For October

SHANGHAI, Oct 11 (SMM) –

In September 2023, the production of lithium hydroxide in China reached 23,999 mt, a decrease of 5% MoM and 1% YoY. The supply and demand situation for lithium hydroxide further deteriorated in September. With the continuous decline in lithium hydroxide prices, many manufacturers were unable to cover their production costs. As a result, more manufacturers chose to switch to producing lithium carbonate or significantly reduce their production. Some manufacturers only retained contract manufacturing lines and focused on traditional areas such as lubricants, resulting in a significant decrease in the overall supply of the industry. On the demand side, due to the substantial price decline of lithium hydroxide, the demand from downstream high-nickel segment remained weak in the domestic market. Meanwhile, overseas market demand continued to decrease. Downstream manufacturers mainly relied on long-term contracts and sporadic orders to replenish their inventories, indicating a low overall purchasing willingness. With high industry inventory and slow destocking, the supply and demand for lithium hydroxide is expected to remain weak in the short term. SMM predicts that in October, the production of lithium hydroxide will reach 23,491 mt, a decrease of 2% MoM and a decrease of 11% YoY.