For the Quarter Ending December 2024
North America
The North American Lithium Hexafluorophosphate (LiPF6) market in Q4 2024 exhibited a mixed price trajectory, largely influenced by the dynamics of the global battery market. Initially, the quarter witnessed a period of relative price stability amidst an oversupplied electrolyte market and reduced consumer inquiries.
This oversupply, driven by factors such as increased production capacity and lower-than-expected demand from battery manufacturers, exerted significant downward pressure on LiPF6 prices. While demand from the EV sector in North America showed some growth, it was insufficient to offset the impact of the oversupplied market. Towards the end of the quarter, prices began to decline further, primarily due to cautious purchasing behavior from battery manufacturers and EV makers.
This cautious approach was influenced by factors such as tightening regulations in key markets, rising interest rates, and concerns about a potential economic slowdown. Despite these challenges, the North American LiPF6 market demonstrated some resilience. The growing demand for EVs in the region, albeit at a slower pace compared to other regions, continued to support the market. However, the overall market sentiment remained subdued, with concerns about oversupply and potential price volatility persisting.
APAC
Q4 2024 witnessed a volatile price trend for Lithium Hexafluorophosphate (LiPF6) in the APAC region, primarily driven by fluctuations in both supply and demand dynamics. The quarter began with a surge in prices due to robust demand driven by pre-holiday inventory buildup and improved consumer sentiment. However, this was followed by a slight dip in prices in the third week of October as weak consumer demand impacted ternary cathode material production. Subsequently, prices rebounded in November and December, primarily driven by increased cost pressures from rising upstream raw material prices like hydrofluoric acid, fluorite, and lithium fluoride). While supply-side constraints, such as production halts and maintenance shutdowns, initially supported price increases, the impact was mitigated by unexpected production levels and new project advancements. Demand remained moderate to high throughout the quarter, supported by strong NEV sales in China, although fluctuations were observed due to varying levels of demand from different cathode material producers. Overall, the Q4 2024 price trend for LiPF6 in the APAC region exhibited a volatile trajectory, with prices experiencing both upward and downward movements in response to shifting market dynamics.
Europe
The European Lithium Hexafluorophosphate (LiPF6) market in Q4 2024 exhibited a mixed price trajectory. The quarter commenced with a bearish trend, primarily driven by a significant influx of cheaper imports from Asia. Declining freight charges and increased container availability further exacerbated the downward pressure on prices. While Chinese producers-initiated efforts to curb output, these measures were proven insufficient to stabilize the market. A notable shift occurred mid-quarter, with prices experiencing a gradual increase. This upward trend was primarily attributed to rising production costs in major exporting nations, particularly driven by increased lithium carbonate and lithium fluoride prices. However, European demand remained relatively subdued, with limited impact on the overall market dynamics. Towards the end of the quarter, prices experienced further appreciation due to the arrival of higher-priced imports from China. Rising demand for electrolytes from Chinese battery cell manufacturers, coupled with increased production costs, significantly impacted export prices. Despite this upward pressure, European demand remained weak, with no significant supply shortages observed in the region.
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.
