For the Quarter Ending September 2024
North America
In Q3 2024, the lithium hexafluorophosphate market in North America experienced a notable downturn, with prices showing a significant decline compared to the same quarter last year. This drop can be attributed to several factors impacting market dynamics, including weak demand, high inventory levels, and sluggish procurement activities. The market also faced downward pressure due to increased imports and limited cost support from upstream sectors, further contributing to the bearish sentiment.
In the USA, where the most substantial price changes were observed, the trend closely followed the broader North American market. The quarter began with a decline in prices, reflecting ongoing challenges, and the downturn persisted through the latter half of the period, indicating a sustained price drop.
By the end of the quarter, lithium hexafluorophosphate prices settled at lower levels, underlining the difficult market environment characterized by oversupply and low demand. The pricing trend for lithium hexafluorophosphate in North America throughout Q3 2024 has been consistently negative, marked by a combination of excess supply, lacklustre demand, and challenging conditions across both upstream and downstream markets.
APAC
In Q3 2024, the pricing environment for Lithium Hexafluorophosphate in the APAC region witnessed a significant decline, with market prices experiencing a downward trend. Several factors contributed to this decrease, including weak consumer demand, oversupply conditions, and subdued purchasing activities in the downstream battery manufacturing sector. These conditions resulted in a bearish sentiment prevailing throughout the quarter. China, in particular, observed the most substantial price changes, with prices dropping significantly. The market trends in China reflected the overall regional scenario, with prices influenced by the ongoing challenges of oversupply and lacklustre demand. The quarter recorded a substantial decrease in prices compared to the same period last year, marking a significant -47% decline. Moreover, compared to the previous quarter in 2024, prices were down by 17%, indicating a continued downward trajectory. The second half of the quarter saw a further decline of 7% compared to the first half, highlighting the persistent negative trend. The quarter-ending price for Lithium Hexafluorophosphate FOB -Qingdao in China settled at USD 6880/MT, underscoring the prevailing downward pricing environment.
Europe
Throughout the third quarter of 2024, the European market for lithium hexafluorophosphate saw a steady decline in prices, driven by a combination of key factors contributing to negative market sentiment. The persistent oversupply, along with weakened demand in Asia and North America, played a significant role in the price downturn. Furthermore, limited support from upstream sectors compounded the pressure on lithium hexafluorophosphate prices during this period. Bearish market conditions, excess supply, and subdued demand exacerbated the ongoing price decline. European manufacturers faced additional challenges due to high production costs, reduced consumer demand, and deteriorating economic conditions, further straining the lithium hexafluorophosphate market. Belgium, in particular, witnessed the sharpest price fluctuations within the European region. The notable decrease compared to the same period last year reflects the challenging market landscape. Additionally, the quarter-on-quarter price shift, along with the difference between the first half and second halves of the quarter, underscores the persistent downward pricing trend throughout the third quarter of 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Lithium Hexafluorophosphate experienced nuanced price adjustments. Price increases were largely driven by rising shipping costs and unseasonal surges in ocean freight demand, compounded by logistical bottlenecks and increased restocking cycles from major importers, which strained the container market. Throughout Q2-24, the sales in the electric vehicle segment continued to pressurize the lithium hexafluorophosphate market.
Elevated freight charges, intensified by shipping capacity constraints and disruptions in major trade routes, significantly impacted the cost structure, leading to higher import costs for lithium carbonate and lithium fluoride, key precursors in Lithium Hexafluorophosphate production. In the USA, where price movements were most pronounced, trends reflected a complex interplay between steady downstream demand, especially from the growing hybrid vehicle market, and an oversupplied domestic market.
Despite stable downstream demand, the market faced a contrast between declining new purchase orders and rising freight and import costs, which together drove prices upwards. Overall, the pricing environment has been stable with a slight upward trend, influenced by logistical challenges and shifting demand dynamics, particularly in the North American automotive sector, amidst broader macroeconomic pressures.
APAC
In Q2 2024, the pricing landscape for Lithium Hexafluorophosphate in the APAC region has been predominantly characterized by a downward trend. Key factors contributing to the price decline include a steady increase in the production outputs from lithium producers, leading to an oversupply in the market. This increased availability has compounded the bearish sentiment, resulting in diminished spot market transactions. Additionally, the ongoing global economic challenges and reduced demand from the electric vehicle sector have exerted further downward pressure on prices. Specifically, the sluggish growth in the EV market, attributed to reduced subsidies and logistical constraints, has notably impacted demand for lithium-ion batteries, thereby affecting the consumption of Lithium Hexafluorophosphate. China has experienced the most significant price fluctuations. Overall trends reveal a marked decrease in prices, influenced by both global supply dynamics and local market conditions. The quarter-ending price for Lithium Hexafluorophosphate FOB-Qingdao in China stood at USD 7750 per metric tonne, reflecting the culmination of these negative influences. Seasonality has played a role, with Q2 traditionally witnessing lower demand, exacerbating the price drop. Comparing this quarter to Q2 2023, prices have plummeted by a staggering 52%, highlighting the severe market correction. Furthermore, a comparison between the first and second halves of Q2 2024 reveals an additional 7.5% decline in prices, underscoring persistent negative market sentiment. The overall pricing environment during Q2 2024 has been decidedly negative, driven by oversupply, weakened demand, and persistent logistical challenges.
Europe
In Q2 2024, the Lithium Hexafluorophosphate market in Europe displayed a largely stable pricing environment. The quarter was characterized by balanced supply and demand, with consistent production rates and stable upstream costs, particularly for essential raw materials. Although logistical issues, such as rising freight charges and congestion in key shipping routes, were present, they did not significantly impact the market. Demand from downstream sectors, particularly the electric vehicle industry, remained subdued due to reduced subsidies and economic uncertainties affecting consumer spending. Moreover, the slowdown in EV sales also led to weak procurement for the product. In Belgium, Lithium Hexafluorophosphate prices saw some fluctuations but generally remained stable over the quarter. Price trends throughout the period showed stability, with no significant percentage change between the first and second halves of the quarter, indicating a steady market sentiment. Overall, the market has maintained a stable pricing environment with a slight upward trend, influenced by logistical challenges and evolving demand dynamics in the European electric vehicle sector, despite broader macroeconomic pressures.
For the Quarter Ending March 2024
North America
In Q1 2024, the prices of Lithium Hexafluorophosphate in the North American region saw a notable decline. Various factors contributed to the market's pricing dynamics during this period, characterized by decreasing prices and subdued demand. One primary factor was the diminished demand from downstream industries, leading to fewer consumer inquiries. This subdued demand stemmed from ample material availability in the domestic market and sluggish market transactions.
Additionally, the stability of cost support from upstream raw materials like Lithium Hydroxide and Lithium Carbonate further contributed to the downward price trend. Specifically in the USA, the largest price changes were evident. Prices of Lithium Hexafluorophosphate dropped by more than 30% compared to the same quarter last year, primarily due to weak market conditions and reduced demand from the automotive industry.
Although throughout this period, the sales in the electric vehicle segment continued to showcase steady growth, however, the oversupply of raw materials and moderate consumption rate continued to impact the overall lithium salts market including the lithium hexafluorophosphate market.
APAC
The first quarter of 2024 in the APAC region saw a mixed performance for Lithium Hexafluorophosphate. The market experienced high supply levels, while demand continued to remain low. The prices of the products in the Chinese market were influenced by various factors. Firstly, the slowing pace of the global economy had a significant impact on the demand for Lithium Hexafluorophosphate. Secondly, the excess supply of raw materials and the absence of support from upstream pricing of Lithium Carbonate contributed to the decline in prices.
Additionally, the ongoing supply chain constraints such as the drought in the Panama Canal and the Israel-Hamas conflict impacted global trade and logistics. The Chinese market, in particular, witnessed a significant decline in prices, with a decrease of 32% from the previous quarter, primarily due to tepid consumer demand and high inventory levels.
Furthermore, compared to the same quarter last year, the price of Lithium Hexafluorophosphate in China decreased by 42%. Despite these challenges, the overall market outlook for Lithium Hexafluorophosphate remains primarily stable, with limited trading activity. However, the quarter-ending price of Lithium Hexafluorophosphate FOB-Qingdao in China remained relatively stable at USD 8950/MT, indicating a steady trend.
Europe
In the first quarter of 2024, the Lithium Hexafluorophosphate market in Europe encountered significant hurdles that impacted pricing dynamics. These challenges mirrored those of the previous quarter, with oversupply playing a key role in reducing demand and consequently driving prices down. The persistent sluggish demand from the lithium-ion battery manufacturing sector continued, with consumers remaining cautious amid declining prices.
Additionally, the dominance of the Chinese market in both Europe and the United States contributed to the overall bearish sentiment. Chinese electric vehicle (EV) manufacturers such as BYD saw significant sales growth, surpassing Tesla as the leading global electric carmaker. This intensified competition and affected the profitability of European-based EV companies. However, Belgium saw a notable surge in sales of battery electric cars, with a growth rate of 75.5%.
Despite this, fierce pricing competition among European, US, and Chinese EV manufacturers persisted. Throughout the challenging period, the market experienced several shutdowns, resulting in disruptions that directly influenced prices. Despite these challenges, there were some minor developments in market transactions for Lithium Hexafluorophosphate in Belgium during the quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American market for Lithium hexafluorophosphate faced a challenging landscape. A notable oversupply of the product prevailed, fostering a bearish market sentiment. This surplus was attributed to ample inventories and the continual importation of competitively priced goods. Concurrently, demand from downstream sectors like battery and cathode manufacturing industries remained subdued, leading to minimal inquiries and a lack of eagerness for procurement.
Additionally, the weak performance of the lithium carbonate market further contributed to the downward price trend of lithium hexafluorophosphate. Among the North American countries, the United States experienced the most significant changes in pricing. Throughout Q4, the consumer market showed reluctance for newer purchases amid ample material availability in the domestic market.
Overall, the North American Lithium Hexafluorophosphate market faced challenges in the fourth quarter of 2023, primarily driven by oversupply, weak demand, and the poor performance of the upstream lithium carbonate market. Simultaneously, the demand from downstream sectors such as battery and cathode manufacturing industries stayed muted, resulting in limited inquiries and a lack of enthusiasm for procurement.
APAC
The fourth quarter of 2023 for Lithium Hexafluorophosphate pricing in the APAC region was bearish with high supply and low demand. The top three factors that impacted the market were high inventories, sluggish procurement, and poor performance of the upstream lithium carbonate market. China, which experienced the most changes in pricing, had a 2.8% increase in January 2024 with adequate supply and moderate demand. The trend for the quarter was bearish with a -71% percentage change from the same quarter last year and a -51% percentage change from the previous quarter. The price percentage comparison of the first and second half of the quarter in China was -12%. The primary reason for the bearish market was the high inventories in the market, which caused procurement to slow down and consumers to destock their inventories. The upstream lithium carbonate market also affected the lithium hexafluorophosphate market negatively. Due to the bearish market, consumers were reluctant to purchase products, and a strong wait-and-see consumer attitude was observed. The latest price of Lithium Hexafluorophosphate FOB-Qingdao in China at the quarter ending December 2023 was USD 10660/MT.
Europe
In the fourth quarter of 2023, the European market for Lithium Hexafluorophosphate experienced a challenging period. Mainly, there was a significant decrease in demand from the downstream battery industry for cathode active materials (CAM) manufacturing. This decline in demand was influenced by weakened business sentiments, economic uncertainties, and a cautious approach from consumers. Additionally, the prices of lithium hydroxide, an upstream product, dropped considerably, leading to negative cost support and decreasing manufacturing costs for lithium hexafluorophosphate. Apart from this, the market was affected by the weakness in the Chinese market, which further intensified the bearish market sentiments. Among the European countries, Belgium and Germany experienced the most considerable changes in lithium hexafluorophosphate quotations. Throughout Q4, the consumer market showed reluctance for newer purchases amid ample material availability in the domestic market. In conclusion, the Lithium Hexafluorophosphate market in Europe faced challenges in the fourth quarter of 2023, with weak demand, decreased cost support, and low-priced imports impacting the market. Belgium experienced notable price declines, reflecting the overall bearish market conditions. Although, the sales in the electric vehicle segment were on a steady incline.
For the Quarter Ending September 2023
North America
In North America, the price of lithium hexafluorophosphate witnessed a decline in the third quarter of 2023, primarily due to reduced demand from downstream industries and built-up inventories of materials in the domestic market. Throughout the third quarter of 2023, the price of lithium hexafluorophosphate in the USA market fell as a consequence of suppressed downstream demand, particularly from the electric vehicle (EV) sector in the Cathode Active Material (CAM) manufacturing industry. Inquiries into the product indicated the presence of high inventories amongst the dealers, although there was an increase in electric vehicle sales. Furthermore, weak investor sentiment prevailed, largely influenced by the sluggish recovery of the Chinese economy. The supply of Lithium hexafluorophosphate in the domestic region was moderate, and there was a slight decline in imports. Additionally, in light of dampened bilateral trade sentiments with China, imports of the product slowed down further. Notably, production costs significantly decreased due to weaker cost support from upstream Lithium fluoride, leading manufacturers to lower their offered quotations.
APAC
In the Asia-Pacific region, the price of lithium Hexafluorophosphate witnessed a decline in the third quarter of 2023. This decline was primarily due to low consumer demand from the downstream sector, an accumulation of inventories, and a reduced production rate. During this period, the market prices of Lithium Hexafluorophosphates in China also experienced a drop in the domestic market. This was driven by the prevailing weak demand conditions in the region. Inquiries from the downstream electrolytes manufacturing industries continued to decrease due to an oversupply situation in the market. The overall trading atmosphere was characterized as average, with consumers adopting a cautious buying attitude, primarily making purchases on an as-needed basis. It's important to note that domestic inventories were ample in the region. Regarding supply, raw material availability was sufficient, while in terms of production, the cost support from the upstream Hydrogen Fluoride and Phosphorus Pentachloride market was observed to be stable to low. No major constraints related to the supply chain were reported. As of September 2023, Lithium Hexafluorophosphate prices were assessed at USD 14,350 per metric ton.
Europe
The Lithium Hexafluorophosphate market in Europe demonstrated a bearish pricing trend in the third quarter of 2023 due to weak demand from the downstream sector, low import prices, and limited inquiries. In Germany, the price of lithium hexafluorophosphate experienced a consistent decline, largely as a result of a significant drop in demand from battery manufacturing especially in the Cathode Active Material (CAM) manufacturing industry during this quarter, along with subdued consumer inquiries. Deteriorated business sentiments across the European region also contributed to a sustained downward trend in the pricing of Lithium hexafluorophosphate. Battery manufacturers have shown no interest in increasing their orders during the period of third and fourth quarters, opting for cautious purchases, especially in anticipation of further price reductions, and primarily focusing on long-term orders. In terms of supply, the availability of Lithium Hexafluorophosphate was moderate in the European region, with market participants maintaining consistent imports of the product. Furthermore, there have been no reported instances of supply chain constraints or port congestion.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the Lithium Hexafluorophosphate market in the USA has consistently observed a bearish outlook throughout the quarter instigated by a plunge in the cost support from the feedstock Lithium Carbonate and Lithium Hydroxide. At the start of the quarter, the major manufacturers observed a serious slack in the prices due to the consistent drop in the benchmarking prices of the feedstock Lithium Carbonate. Reflecting a softer market dynamics and a reversal in the prices of the Lithium ore spodumene. However, the prices forecast for the upstream Lithium Carbonate has been slashed to USD 23000 per tonne in August amidst the higher confidence regarding supply in upcoming terms. In addition, the announcement of the Chilean government's intention to nationalize the Chilean Lithium industry impacted every American private player that has their assets in Chile, however in contrary it also presented a lucrative opportunity to capture the investments as the SQM has 79% of their assets allocated in the country as compared to its American counterpart Albemarle that only consists 26% of their total assets in the region. In terms of demand, the North American market witnessing consistent growth in the demand for EV batteries supported due to the sales of EVs in the region. As per the data, nearly 300,000 sales of fully electric vehicles were registered in the USA alone. As a ripple effect, amidst the overall yet contradicting market scenarios the offers for Lithium Hexafluorophosphate were consistently easing and the DDP USGC discussion for Lithium Hexafluorophosphate was assessed at USD 26,452 per tonne during the quarter ending in June 2023.
Asia Pacific
During the second quarter of 2023, the Lithium Hexafluorophosphate in the Asia Pacific market observed mixed sentiments. The market developments for Lithium Hexafluorophosphate were predominately supported by the consistent fluctuation in the offers for Lithium Carbonate benchmark offers in the domestic market. During the second quarter of 2023, the prices for feedstock Lithium Carbonate has been dropped to the lowest point since the Lithium industry observed a boom, especially after COP 26 while touching USD 12849 per tonne on FOB Qingdao basis in April 2023. However, later in the quarter, the market observed a considerable rebound after the May Day holidays. This market is predominantly supported by the depleting inventories of cathode materials amongst EV manufacturers. Whereas, after undergoing a complex industrial adjustment process, the operational mode of the Lithium Battery manufacturers has become smoother and less volatile. During the first quarter, the Lithium Hexafluoprophsohate market in China entered an off-season period resulting in the demand contractions and the rapid expansion in the midstream or feedstock Lithium Carbonate manufacturing capacities smoothened the supply chain. As a ripple effect, the cost support for the Lithium Hexafluorophosphate has rebounded coupled with the improved demand from the active cathode materials segment in the battery manufacturing facilities in the Chinese domestic market.
Europe
In the second quarter of 2023, the Lithium Hexafluorophosphate market in the European market has observed mixed sentiments throughout the second quarter. Initially, at the start of the quarter, the offers were on the lower end as the discussions and arbitrage remained restricted amidst the seasonal off-trend in the far east Asian market. Further coupled with the rapid expansion of the midstream and feedstock Lithium Carbonate and Lithium Hydroxide facilities has smoothened the supply chain. In addition, during April investment in the European Lithium sector has lowered amidst the uncertainties regarding the ongoing offered quotations of Lithium Hexafluorophosphate and the historic plunge in the benchmark offers of feedstock Lithium Carbonate coupled with the Chilean government's intention to national the Chilean Lithium industry. However, the market sentiments improved in the latter half of the quarter as the global demand improved and proportionally impacted the cost support from the feedstock. Whereas despite the ongoing economic difficulties the demand for Lithium Hexafluorophosphate has improved at a slower pace reported by a European source. In addition, the domestic manufacturers in the region have also faced a considerable supply glut for the feedstock Lithium Carbonate as they have to be more dependent on the cargoes from South America and paid premiums for the Asian cargoes amidst the low running inventories in the region.
For the Quarter Ending March 2023
North America
The Lithium Hexafluorophosphate market showcased a bearish pricing trend throughout the first quarter of 2023 in the US domestic market. In January, the prices remained on a stable level due to wait-and-see sentiments amongst the downstream players, especially after the market activities in China temporarily shut amidst the Lunar New Year holidays. In February, the market prices plummeted amid adequate inventories of the product and sluggish demand for the product from the downstream Cathode Active Material (CAM) manufacturers in the domestic and overseas markets. In March, the prices declined further amidst inflationary pressure and increased interest rates by the central banks, due to which consumer sentiments deteriorated, and the demand outlook remained suppressed in the region. Throughout Q1, the cost support from the upstream Lithium Fluoride was weak in the North American market.
APAC
In the first quarter of 2023, the Lithium Hexafluorophosphate market showcased a bearish pricing trend in the Chinese domestic market. In the first month, the prices declined due to curtailed demand from the downstream Cathode Active Material (CAM) manufacturers. As per the market participants, the inventory levels were sufficient to support production throughout the first quarter of 2023. In the second month, the prices continued to drop as the demand outlook remained silent amid a drop in the procurement rates from the CAM manufacturers in domestic and international markets. In the last month, the prices dropped further amid weaker cost support from the upstream Lithium Fluoride. The demand was sluggish amid the wait-and-see attitude of end-use consumers. Thus, the offered quotes for Lithium Hexafluorophosphate FOB Qingdao settled at USD 20103 per tonne at the end of Q1 2023.
Europe
In the first quarter of 2023, the overall market prices of Lithium Hexafluorophosphate rode the downward trajectory in the European markets. In January 2023, the offered quotes plunged and moved similarly to the Asian market. In addition, the rising inflation and energy prices kept the operating rates restricted. In February, the prices dropped due to weaker demand from the downstream Cathode Active Material (CAM) manufacturers in the Asian markets leading to restricted exports of the product and uncertainties regarding the economic conditions. In March, the prices dropped further due to lacking market competitiveness from the Asian markets and the wait-and-see consumer market sentiments across the globe. Also, the manufacturing PMI fell in March due to a drop in new orders and lower input costs in the European region.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Lithium Hexafluorophosphate market in North America stabilized after remaining on an upward trajectory, and the growth pace has dropped. This development has been majorly attributed to the slowdown in EV sales in the APAC region, further coupled with the drop in the cost support from the key feedstocks such as Lithium Hydroxide, Anhydrous Hydrofluoric Acid, and Pentachloride. The overall market sentiments for Lithium Hexafluorophosphate offers remained constant on a bullish run for most of the period. Although in November 2022, the discussions were consistently moved upwards and the cost support from the feedstock was sufficient to support the offered quotations in the domestic market. On a year-on-year basis, numerous market participants, such as Albemarle, stated that the organization had soared its profits by seven folds during the third quarter of 2022. As a ripple effect, the DDP USGC discussions for Lithium Hexafluorophosphate were assessed at USD 40312 per tonne in December 2022.
Asia Pacific
Overall, the Lithium Hexafluorophosphate market in the Asia Pacific region observed a slight slowdown in the latter half of the quarter. In the first couple of months, downstream manufacturers actively carried out the restoking activities. The market has been primarily impacted by the revocation of the state-sponsored New Energy Vehicle (NEV) subsidies. That concerned the domestic manufacturers regarding offtakes for cathode materials to counter the impact of the downstream slowdown regarding the procurement of raw material, affecting the offers for Lithium Hexafluorophosphate in the domestic market. As a ripple effect, the FOB Qingdao discussions for Lithium Hexafluorophosphate were assessed at USD 36517 per tonne in December 2022. At the same time, the far-east Asian market players have restricted the cash outflow from the organization to showcase a better financial performance on the annual report.
Europe
Overall, the Lithium Hexafluorophosphate market in the European region has witnessed mixed sentiments throughout the fourth quarter of 2022. In the first month, the offers have remained bullish on an upward trajectory prompted by the market rebound post-summer holidays. However, the drop in sales of EVs in APAC and soaring inflation with hiked interest rates have made the market players reluctant towards hasty buying streaks. In addition, the increment in the energy cost has substantially impacted the operating rates at the manufacturing facilities, curtailing the offtakes volumes by a considerable margin. As a ripple effect, the overall CFR Antwerp discussions for Lithium Hexafluorophosphate were assessed at USD 41146 per tonne in December 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the Lithium Hexafluorophosphate market in the North American region remained tightened. This development has been majorly attributed to the insufficient stocks at manufacturing facilities to offer in the spot market. In addition, the cost support from the key feedstocks such as Lithium Carbonate/Hydroxide has persistently improved, and the Anhydrous Hydrofluoric Acid has also staggered upwards. In addition, the fertilizer shortages and food crisis consistently pressure the quotes from an essential feedstock Phosphoric Acid. At the same time, the current production capacity against the active demand has widened by enormous margins, estimated showcased that 59 new mines with 45 KTPA production capacity of LCE were required with recycling to cope with the demand within this decade. As a ripple effect, the FOB Texas discussions for Lithium Hexafluorophosphate were assessed at USD 40600 per tonne in September.
Asia Pacific
Overall, the Lithium Hexafluorophosphate market in the Asia Pacific region remained persistent In an upward trajectory. This development has been majorly attributed to the curtailed operations loads or temporary shutdown in Tianqi Lithium and Yahua Lithium, two major Lithium derivatives manufacturing facilities in China, due to power rationing. The region faced extreme heat waves that led to a drop in water levels across major rivers in China, which proportionally impacted the overall hydropower generation that China facilitates in the domestic market. In addition, the cost supports the key feedstocks such as Lithium Hydroxide, and Anhydrous Hydrofluoric Acid hovered on a higher level against the persistent inquiries from the EVs automotive industries. At the same time, the currency fluctuations remained stagnant, and the CNY depreciated significantly against the USD, impacting the order volumes and quotations. As a ripple effect, the FOB Qingdao discussions for Lithium Hexafluorophosphate were settled at USD 38460 per tonne in September.
Europe
Overall, the Lithium Hexafluorophosphate market in the European region was muted for most of the quarter due to the prolonged summer holidays. The spot arbitrage and operation at the downstream manufacturing facilities remained subdued. The DDP Antwerp discussions for Lithium Hexafluorophosphate were assessed at USD 45960 per tonne during the quarter ending in September. The downstream manufacturers were more inclined to a long-term contractual talk rather than spot offtakes. In mid-September, as the market activities across Northwest Europe resumed, the European Union passed the "Critical Raw Material Act" to secure the supply of Lithium and rare earth metal. Its demand is anticipated to increase by five folds by 2030 to replace oil & gas in an ambition to become the climate-neutral continent. The Critical Raw Material Act will help focus on strategic applications, networking amongst the European agencies, a more resilient supply chain, and a solid & sustainable level playing field.
For the Quarter Ending June 2022
North America
The North American market for Lithium Hexafluoprophosphate maintains bullish sentiments throughout the second quarter of 2022. The retaliatory sanctions imposed on Russia by the U.S and the E.U has curtailed the supplies of the essential raw materials for the E.V. raw materials in the domestic market. The domestic players were forced to restrategize to source the raw material from other means. At the same time, several players in the E.V. market made necessary arrangements on a contractual basis to ensure the supplies of Lithium Hexafluorophosphate in the long run. In response, the competition amongst the domestic market participants has soared significantly, forcing the producers to hike the prices on the spot markets.
Asia Pacific
In the second quarter of 2022, the Lithium Hexafluorophosphate market in the Asia Pacific observed an enormous plunge after the consistent increment in the offered quotations since the first quarter of 2021. The COVID shutdown suppressed this development in the market dynamics in Northeast China, where most E.V. manufacturing facilities were concentrated. In response, the market condition forced the automotive players to either reduce production or temporarily shut down operations amidst the shortage of essential auto parts. The impact propagated into all the upstream value chains forcing producers to drop the quotations for Lithium Hexafluorophosphate in the Chinese domestic market.
Europe
In the second quarter of 2022, the Lithium Hexafluorophosphate market in Europe remained in the staggering upward trend. The retaliatory sanctions imposed on Russia by the U.S and the E.U has curtailed the supplies of the essential raw materials for the E.V. raw materials in the domestic market. The market players were hesitant to procure the Russian cargoes amidst the sanctions. Whereas COVID shut down in China provided adequate room for the European participants to obtain the shipments at feasible rates, most orders were delayed due to port congestion. Although due to the high inflation and high-interest rates, the overall market observes a significant dip in PMI of the Eurozone region.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the Lithium Hexafluorophosphate sentiments in the North American region remained strengthened, and the gains were exceptional. The supply-demand imbalance of the Chinese domestic market dominated the global market dynamics, uplifting the benchmark prices, globally. In comparison, the sturdy stance of the US government over Russia jeopardized the supply of the raw materials amidst the sanction over Russia's invasion of Ukraine. As a ripple effect, the supply-demand gap widened, and the DDP USGC discussions for Lithium Hexafluorophosphate settled at USD 1350 per Kg during the quarter ending in March 2022.
Asia Pacific
Overall, the Asia Pacific region observed a significant gyration in the market dynamics as the sentiments were mixed in the first quarter of 2022. In the first half, the market remained bullish as the competitiveness surged after China's logistics had halted ahead of the Chinese Lunar New Year. The inquiries poured rapidly from the domestic and overseas market, and the deliveries lag time extended till March. The slower operational rates at the upstream facilities kept the operational rates suppressed amongst the Chinese producers and strengthened the will to increase the prices. However, due to the resurgence of COVID and government intervention, the unprecedented growth in the offers to some extent. The FOB Qingdao discussions for Lithium Hexafluorophosphate were settled at USD 96200 per tonne during the quarter ending March 2022.
Europe
During the first quarter of 2022, the Lithium Hexafluorophosphate in the European market persistently hiked due to the tightened supply against the extraordinary demand from the EV batteries industry. The market competitiveness gained rapidly ahead of the Chinese Lunar New Year holidays as the arbitrage and logistics remained disturbed for two weeks. In the second half, the conflict erupted in the eastern European region that hindered the domestic production capabilities as the sturdy stance of the European authorities restricted its trade with Russia impacted the supplies of raw materials.
For the Quarter Ending December 2021
North America
In the fourth quarter of 2021, the Lithium Hexafluorophosphate market in the North American region witnessed exceptional growth throughout the quarter. This development is majorly caused due to the enormous demand outlook from the EV segment that outstrips the supply outlook in the US domestic market. Whereas, the congestion induced due to the rising COVID cases from Northeast Asian ports and the limited availability of freight vessels provided additional cost support besides delaying the deliveries of raw materials. As a ripple effect, the offers for Lithium Hexafluorophosphate witnessed exceptional gains in the fourth quarter along with surpassing the projected margins by approx. 33%
Asia Pacific
The Asia Lithium market observed a consistent growth since the mid of the third quarter due to numerous economic factors. The port congestion in Northeast Asia delayed the deliveries of Lithium Hexafluorophosphate and orders piled up from the domestic and overseas buyers for the Chinese cargoes and the higher raw material prices strengthened the will of producers to raise the offered quotations. Whereas, the ramped-up transition towards a greener economy boosted the demand from the EV sector. Whereas a major player in China plans to expand the production of LiPF6 by 30,000 tonnes. As a ripple effect, the Lithium Hexafluorophosphate prices soared exponentially and gained by 10.71% in values during the fourth quarter of 2021, and the Ex-Works Qingdao discussion for USD 94100 per tonne, in December.
South America
In the fourth quarter of 2021, the South American Lithium Hexafluorophosphate market witnessed an unprecedented hike after the COP 26 meeting held in Glasgow, and numerous EV battery manufacturers were eager to ensure long-term supplies. The Chilean authorities recently announced to form state-owned Lithium miners to manage the country’s Lithium Triangle. However, as the demand exceeded the domestic supply outlook it forced the producers to raise the quotations for and king of Lithium source for the production of batteries including Lithium Hexafluorophosphate, therefore the offers soared drastically in the fourth quarter of 2021 due to unprecedented demand outlook.
