US Lithium Fluoride Market Faces Uncertainty Amid Oversupply and Weak Demand

In the first half of September, the Lithium Fluoride market in the US exhibited uncertainty due to varying supply and demand fronts. The prices of Lithium Fluoride noted marginal corrections in the previous month as the producers lowered their selling prices. However, entering September, the support from the upstream markets, which has been poor since the start of the year, hit the Lithium Fluoride market.

Though, the prices of Lithium Fluoride have stabilized, weakness in lithium carbonate prices has persisted as the oversupply situation and lagging consumption speed have continuously dragged the prices down. Coupled with declining prices of lithium carbonate, the market giants have also faced turmoil this year due to depleting profit margins.

Lithium Fluoride producers have been operating at the usual pace, while increase import volumes from international sources is expected, signalling an oversupply situation. The U.S. Lithium Fluoride market is currently facing a period of oversupply, but market dynamics are expected to adjust in the near future. As noted by industry experts, prolonged low prices of lithium salts including Lithium Fluoride are likely to lead to production cuts, delayed expansions, and stalled funding for companies in the feasibility stage.

Looking ahead, available global lithium production is anticipated to reach 1,439,400 metric tons of lithium carbonate equivalent (LCE), while demand will be close behind at 1,390,370 metric tons. However, analysts warn that slowing EV sales growth and an oversupply in China’s battery capacity could weigh on demand for battery metals in the short term. Demand conditions for Lithium Fluoride have remained stagnant, with procurement of new supplies slowing further due to high domestic inventory. Market activity in both Europe and North America has been subdued recently.

On the other hand, Tesla recorded a significant rise in its EV sales last month, both in China and in exports to global markets. This growth signals a resurgence in global EV demand, indicating that Chinese EV manufacturers might be able to navigate the regulatory challenges presented by new tariffs from the US, EU, and Canada this year. Despite global restrictions on Chinese electric vehicle exports, major Chinese EV manufacturers like BYD, Li Auto, Nio, and XPeng reported significant year-on-year sales growth for August.

According to the ChemAnalyst pricing intelligence, the prices of Lithium Fluoride are anticipated to hold firm in the upcoming weeks. Better consumer sentiments and an increased pace of electric vehicle sales coupled with enhanced demand for energy storage systems (ESS) might bolster the lithium salts market, including Lithium Fluoride.