Lithium Metal Price Trend and Forecast
North America
Lithium
Metal prices witnessed a plunging price trend in the third quarter of
2022 in the US market. According to market participants, rising demand for
consumer electronics and lithium for producing electric vehicle (EV) batteries
caused lithium prices to fall in July. Despite price pressures, Chilean miners
anticipated an increase in lithium inquiries in the fourth quarter. However,
the bearish price trend of Lithium Metal took a new turn in August and
September, driving down the prices of companies dealing in the element, with
Lithium Americas being one prominent manufacturer who faced indifferent
results. Buyers argue that sourcing critical raw materials like lithium locally
has been the only logical step toward creating a vertically integrated domestic
supply chain. The emergence of a legitimate EV market is driving demand for
lithium metal. In September, the company's lithium exports fell significantly
in volume and price, falling 10% and 11%, respectively, month over month. As a
ripple effect, the Lithium Metal (99.9%) prices for FOB Boston (USA) settled at
USD 401670/MT.
Asia Pacific
In the Chinese market, Lithium
Metal prices witnessed mixed sentiment in the third quarter of 2022 amidst
fluctuations in the feedstock prices. Because of the ongoing maintenance period
and the regional market's economic woes, the overall demand outlook remained
constrained in July and mid-August. Record-breaking heat waves have hampered
the outlook for domestic supply in China's ongoing energy crisis. Furthermore,
the Chinese electricity shortage forced limited transactions and market
participants to wait and watch the outlook. However, the domestic Lithium Metal
market price was at an all-time high in September. The Price of
Lithium Carbonate was running strongly, coupled with an increase in
downstream stocking and purchasing, cost-side support, and demand-side
increased, driving the market to run strongly, the overall market trend was
positive, and the focus of lithium hydroxide market negotiation was high. As a
ripple effect, the Lithium Metal (99.9%) prices for FOB Shanghai (China)
settled at USD 451700/MT.
Europe
During the third quarter of 2022,
Lithium Metal prices showcased a stagnancy in their price trend in the European
market. According to market participants, the stagnant prices were caused by
pandemic delays and supply disruptions driven by summer power outages in China
and demand and supportive global policies that drove up electric vehicle sales.
However, lithium metal prices have more than tripled in the last year, raising
the cost of batteries used in electric vehicles, with recent gains driven by
solid demand and disruptions at a domestic manufacturing hub. As market
activity in Northwest Europe resumed in mid-September, the European Union
passed the "Critical Raw Material Act" to ensure the supply of lithium
and rare earth metals. As a ripple effect, the Lithium Metal granulate prices
for FOB Hamburg (Germany) settled at USD 89650/MT.
ChemAnalyst tackles the primary
difficulty areas of the worldwide chemical, petroleum, pharmaceutical, and
petrochemical industries, empowering decision-makers to make informed
decisions. It examines and analyses geopolitical risks, environmental concerns,
raw material availability, supply chain functioning, and technological
disruption. It focuses on market volatility and guarantees that clients manage
obstacles and hazards effectively and efficiently. ChemAnalyst's primary
expertise has been data timeliness and accuracy, benefiting both local and
global industries by tuning in to real-time data points to execute multibillion-dollar
projects internationally.
Comments
Post a Comment