US Lithium Fluoride Prices Remain Stable in June Amid Sluggish Demand and Elevated Freight Costs

Texas, USA: The US Lithium Fluoride market showcased stability in June 2024 and the prices have remained steady. Over the past month, Lithium Fluoride market fundamentals have not shifted. The supply and demand dynamics have been performing underwhelmingly in the US domestic market. In the domestic electric vehicle sector, downstream demand for Lithium Fluoride has remained at moderate levels, with ample materials available locally. However, consumer inquiries for Lithium Fluoride have been slow, and new purchase orders have continued to decrease also due to increased competition from other markets.

In the past two to three weeks, due to sluggish spot market activity, weakness in the Lithium Fluoride market was noted, according to sources. The market is calm at the moment, the industry experts quoted. The bearish sentiment from Asia has also contributed to this decline, counteracting slightly higher freight costs from Asia to North America, as reported by the market participants.

Elevated freight charges on major sea trade routes have led to increased shipping costs for shipments of the upstream lithium carbonate to the US. However, the support for the Lithium Fluoride market was minimal. Unexpected rises in ocean freight fueled by a potential restocking cycle in Europe and North American as importers accelerating peak season demand, are further straining the container market.

According to recent surveys conducted by market participants, there has been a notable decline in U.S. consumer interest in purchasing electric vehicles (EVs), with only a small portion of the population expressing interest in buying an EV. Nevertheless, interest in hybrid vehicles remains strong, as hybrids offer electrification benefits without significant lifestyle disruptions. This suggests that while enthusiasm for EVs may be diminishing, hybrids could play a crucial role in the transition toward greater vehicle electrification.

Lithium Fluoride producers are steadily ramping up production, which is expected to lead to an increase in the import volume of lithium carbonate from foreign sources. This indicates a general trend of recovery on the supply side of Lithium Fluoride. However, in the short term, there hasn't been any significant change in the scattered sales sentiment within the Lithium Fluoride market. This has limit the liquidity of spot market transactions during periods of low prices. In China throughout June,  an intermediary indicated potential lower prices in the upstream lithium hydroxide market, although transactions had not been confirmed yet. According to the ChemAnalyst pricing intelligence, the prices of Lithium Fluoride are anticipated to hold stability in the upcoming weeks and, improved market fundamentals are foreseen.