For the Quarter Ending September 2024
North America
In Q3 2024, the North American region experienced a notable decline in Lithium Metal prices, with the USA particularly facing substantial price decreases. This downward trend was primarily influenced by a combination of factors, including oversupply concerns stemming from new sources in Africa and China, coupled with a global market surplus that exerted pressure on prices. The persistent imbalance between lithium production and demand dynamics further contributed to the pricing downturn, leading to a bearish market sentiment.
Moreover, the correlation between reduced industrial production, trade tensions impacting supply chains, and geopolitical instability in lithium-rich regions added to the negative pricing environment. The quarter also witnessed a moderate decrease in demand for lithium, exacerbated by economic uncertainties and regulatory challenges in key markets.
Additionally, the impact of decreased government subsidies for electric vehicles on adoption rates further dampened demand for lithium-ion batteries, influencing market prices. Throughout the quarter, the USA experienced a significant 4% price decline from the previous quarter, with a notable decline of 3% price between the first and second halves. The quarter concluded with the latest price standing at USD 140506/MT of Lithium Metal (99.9%) FOB Boston, reflecting the prevailing downward trajectory in pricing for the region.
Asia-Pacific
In Q3 2024, the Lithium Metal pricing in the APAC region experienced a significant decline, with China being the focal point of maximum price changes. The market was influenced by various factors, including oversupply concerns arising from new lithium production facilities coming online globally, trade tensions leading to reduced manufacturing activity, and advancements in alternative battery chemistries gaining traction.
These factors collectively contributed to a bearish sentiment in the market, leading to a notable 10% decrease from the previous quarter and a further decline from the first and second half of the quarter. China, in particular, saw a substantial decrease of 6.0% price, with the latest quarter-ending price standing at USD 184046/MT of Lithium Metal (99.9%) FOB Shanghai.
The country's market trends were indicative of the overall decreasing sentiment, aligning with the broader regional dynamics of weak economic growth, subdued demand from battery manufacturers, and ongoing oversupply challenges. Despite the stable supply, the demand remained low, further exacerbating the downward pressure on prices. The quarter also witnessed no significant disruptions or plant shutdowns in the Lithium Metal industry.
Europe
In Q3 2024, the Europe region experienced a significant decline in Lithium Metal pricing, driven by various factors impacting the market. Oversupply, weakening demand, and increased competition from alternative battery technologies contributed to the downward pressure on prices. Uncertainty in the global economic outlook further exacerbated the situation, leading to cautious purchasing behaviour among consumers.
Plant shutdowns and disruptions also played a role in disrupting the supply chain, adding to the negative sentiment in the market. Germany, in particular, witnessed the most substantial price changes during the quarter. The country's manufacturing sector faced challenges, with declining orders and production impacting the demand for Lithium Metal.
Overall trends in Germany reflected a bearish market sentiment, with seasonality and correlation in price changes evident. The quarter recorded a notable 6% decrease from the previous quarter, with a 5% decline between the first and second half of the quarter. The quarter-ending price for Lithium Metal granulate FOB Hamburg in Germany stood at USD 544753/MT, highlighting the prevailing negative pricing environment in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, Lithium Metal prices in North America have remained largely stable, despite various influencing factors. This quarter witnessed a balanced pricing environment, sustained by consistent supply and moderate demand from downstream industries. Key elements driving market stability included a balanced supply-demand equation, with inventories remaining sufficient to meet industrial needs. The absence of significant plant shutdowns or supply chain disruptions further contributed to this equilibrium. Although the North American market faced logistical challenges due to the Panama Canal drought, its impact was mitigated by adaptive supply chain strategies, ensuring uninterrupted flow and price stability.
Focusing on the USA, the market experienced the most notable price fluctuations within the region. However, these changes were marginal and did not significantly disrupt the overall stable pricing trend. Seasonality effects were minimal, reflecting consistent market activities throughout the quarter. The correlation in price changes indicated a predictable market behaviour, with adjustments being primarily driven by steady increases in electric vehicle and battery manufacturing demands.
From the previous quarter, prices recorded a nominal percentage change of 2%, indicative of slight market adjustments rather than substantial shifts. The comparison between the first and second half of the quarter showed no significant price variation, reinforcing the stable sentiment. At the end of Q2 2024, the price for Lithium Metal (99.9%) FOB Boston in the USA settled at USD 147026/MT, underscoring a stable and predictable pricing environment conducive to strategic planning and investment in the lithium sector.
Asia-Pacific
In Q2 2024, the APAC region experienced an upward trend in Lithium Metal prices, driven by several compelling factors. The quarter has been marked by heightened demand from the electric vehicle (EV) industry and energy storage systems, coupled with supply chain disruptions. Key challenges such as geopolitical tensions and regulatory barriers in major lithium-producing regions have impeded the smooth flow of lithium, affecting market stability. Logistical issues, including increased shipping costs and delays caused by the Panama Canal drought, have further exacerbated supply constraints. No significant plant shutdowns were observed during this period, ensuring a stable production environment.
Focusing on China, the country witnessed the most substantial price changes within the APAC region. The overall trend in China indicated a bullish market sentiment, influenced by the robust demand for Lithium Metal in power batteries and the automotive sector. The price trajectory reflected seasonality effects, with a consistent rise in the first half of the quarter and an increase in the latter half.
This period saw a strong correlation between increased domestic supply from Chilean exports and rising demand, resulting in a gradual price escalation. yet the quarter-ending price for Lithium Metal (99.9%) FOB Shanghai reached USD 216946/MT, underscoring a consistent increasing trend. The pricing environment in Q2 2024 has been predominantly positive, reflecting a stable yet upward trajectory in the Lithium Metal market within the APAC region, propelled by sustained demand and strategic supply adjustments.
Europe
In Q2 2024, the European lithium metal market exhibited stable price trends, driven by several significant factors. Supply stability was maintained despite global disruptions, such as the Red Sea blockade and Panama Canal drought, which caused shipping delays and increased logistical costs. The European Commission's proactive measures to secure critical minerals through project calls and recycling initiatives further bolstered market equilibrium. These efforts mitigated the impact of geopolitical tensions and regulatory challenges, ensuring a steady influx of lithium metal into the European market. Additionally, the collaboration between Japan and Europe to establish a battery recycling system aimed at reducing reliance on Chinese rare metals contributed to sustained price stability.
Focusing on Germany, the market saw the most pronounced price changes within the Europe Region. The German automotive sector faced a downturn in electric vehicle (EV) sales due to the phasing out of incentives, affecting lithium metal demand. However, the overall trend remained stable, with moderate demand from manufacturers of batteries and energy storage systems balancing the market. Seasonal fluctuations were minimal, and the correlation between price changes and market dynamics indicated a stable environment.
Despite a slight decline of 1% from the previous quarter, the pricing environment was consistent, reflecting stability rather than significant volatility. The price comparison between the first and second half of the quarter showed no substantial variation, underscoring the market's steadiness. The quarter ended with a lithium metal granulate FOB Hamburg price of USD 590770/MT, highlighting a stable sentiment in the market. The stable pricing context suggests a cautiously positive outlook for the lithium metal market in Europe, driven by strategic initiatives and supply chain resilience.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been challenging for the Lithium Metal market in the North America region. Prices experienced a significant decline due to weakened consumer demand and an oversupply situation. The downstream sector, particularly lithium-ion battery manufacturing, faced subdued demand as consumers adopted a cautious approach amid falling prices. Manufacturers also encountered shrinking profit margins due to reduced production costs. The influence of the Chinese market was notable both domestically and internationally, particularly in North America and Europe. Chinese electric vehicle manufacturers demonstrated remarkable growth, surpassing Tesla in sales and achieving record-breaking battery-only vehicle sales.
In the United States, Lithium Metal prices saw a notable decrease in the first quarter of 2024. This decline was attributed to subdued demand from downstream markets and an influx of low-cost imports. The Lithium-ion battery manufacturing sector experienced reduced demand, and exporting nations, especially China, contributed to oversupply, affecting the North American market. Excessive imports from Zimbabwe and Australia further contributed to oversupply in the USA.
Overall, the pricing environment for Lithium Metal in the North America region has been negative. Prices have experienced a significant decline due to weakened demand and oversupply. The market sentiment has been bearish, with low demand and high supply. The prices in the first quarter of 2024 have shown a downward trend compared to the same quarter last year. There has been a notable decrease in prices from the previous quarter in 2024.
Asia-Pacific
The first quarter of 2024 has been challenging for the Lithium Metal market in the APAC region, with significant price fluctuations observed. Several factors have influenced market prices during this period. In general, the market has experienced a bearish sentiment, with low demand and high supply contributing to the downward pressure on prices. One of the key factors impacting prices has been the influx of cheaper imports, particularly from China. This has led to oversupply in the market, as Chinese manufacturers have been able to offer lower prices due to declining raw material costs and increased production efficiency. Additionally, weak demand from the downstream Lithium-ion battery manufacturing industry has further dampened prices. China has seen the maximum price changes in the region. The market has been characterized by high supply and low demand, resulting in a significant decline in prices. The Chinese market has been heavily influenced by the oversupply situation, driven by increased imports from countries like Zimbabwe and Australia. Overall, the pricing environment for Lithium Metal in the APAC region has been negative, with prices decreasing compared to the same quarter last year. The market has also experienced a downward trend from the previous quarter in 2024. In terms of seasonality, there has been a notable price decline in the first half of the quarter, with prices stabilizing towards the end.
Europe
In Q1 2024, the Lithium Metal market in Europe experienced a challenging quarter, with prices facing significant downward pressure. The market was influenced by several factors, including weak demand from downstream sectors, particularly the lithium-ion battery manufacturing industry. This sector experienced reduced demand as consumers adopted a cautious approach in response to falling prices. Additionally, the market was affected by oversupply, driven by low-cost imports from countries such as Zimbabwe and Australia. This oversupply led to poor new order growth globally and contributed to declining prices. Germany, in particular, saw the maximum price changes in the region. The domestic market faced subdued demand, leading to a decline in Lithium Metal prices. Manufacturing firms reported shrinking profit margins due to decreasing production costs, while inventory accumulation resulted in restricted market activities. The prices of imported goods are expected to decrease further, and inventories of the product are predicted to remain high in the domestic market. Overall, the pricing environment for Lithium Metal in Q1 2024 was negative, with bearish market sentiments prevailing. The market experienced low demand and high supply, leading to declining prices. This trend is expected to continue in the coming months, with a further decline in inquiries and slow production rates anticipated. The Lithium Metal market in Germany is likely to continue facing challenges, with a continued downward pressure on prices.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 was challenging for the Lithium Metal market in North America. In October, Lithium Metal faced weakened market sentiment, resulting in declining prices due to an influx of low-priced imports in the US. Despite expectations for a recovery after the Chinese holidays, demand remained subdued, leading to a continued price descent. During the fourth quarter, lithium metal prices experienced a notable decline, attributed to an influx of low-priced imports saturating the domestic market. Downstream lithium-ion battery manufacturing industries also faced subdued demand.
The global bearish pricing trend was influenced by the Asian market, particularly China, where sellers urgently attempted to unload inventories. In December 2023, Lithium Metal prices in the US domestic market saw a significant decrease due to subdued demand and an influx of low-cost imports. The lithium-ion battery manufacturing sector experienced reduced demand, leading to shrinking profit margins for manufacturing firms.
Oversupply from exporting nations, notably China, and excessive imports from Zimbabwe and Australia contributed to sluggish new order growth globally. Despite apparent strength in European auto sales, the profitability of the electric car sector declined due to unsold EVs and concerns about affordability compared to internal combustion engine vehicles. The latest price of Lithium Metal (99.9%) FOB Boston in the USA at the quarter ending December 2023 was USD 145,615/MT.
Asia-Pacific
In the APAC region, the lithium metal market in the fourth quarter of 2023 witnessed a declining trend. In October, lithium metal prices in China initially faced uncertainty but stabilized after the Golden Week holiday. Sellers halted further price drops, maintaining stability amid expectations of fourth-quarter restocking. Although offers rose with positive future performance, demand remained demand-driven, resulting in low-volume trades. Supply chain operations improved slightly, and no major port congestion occurred. However, November witnessed a decline in the lithium metal market due to persistent weak demand in the Chinese spot market. Manufacturing costs consistently decreased, driven by plummeting spodumene prices. Demand from the lithium hydroxide market remained minimal, despite a global increase in battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) sales. In December, China experienced a significant drop in lithium metal prices due to increased affordable imports and sluggish demand. Sellers consistently lowered prices, influenced by declining raw material prices and oversupply from Zimbabwe and Australia. Market activities were limited, and weakness in the lithium metal futures market further impacted prices. Despite this, FADA reported a substantial year-on-year increase of 49.25% in electric vehicle sales in China in 2023. The quarter ended with a price of USD [insert price] per MT of Lithium Metal (99.9%) FOB Shanghai in China.
Europe
In the fourth quarter of 2023 (Q4), the Lithium Metal market in Europe experienced a plunging price trend. In October, the German Lithium Metal market faced a significant decline in sentiment and prices due to weak demand from downstream sectors and an influx of low-priced imports. The negative business atmosphere in Europe and reduced capacities during the August vacation season added to the downturn. October witnessed a slow market rebound, with cautious consumer behavior in the lithium-ion battery and energy storage systems sectors. November continued the trend of declining Lithium Metal prices in Germany, attributed to persistent weak demand and the impact of low-priced imports, notably from China. The European market, including the lithium-ion battery and energy storage sectors, experienced decreased demand. The decline in Lithium Metal prices in December further affected the domestic market, leading to reduced demand in the lithium-ion battery manufacturing sector. Oversupply, influenced by excessive imports from China, Zimbabwe, and Australia, impacted North American and European markets. Major automakers like Volkswagen, GM, and Ford struggled with unsold EVs, reflecting the challenges of affordability in the current macroeconomic environment and lower-than-expected EV demand. The latest price of Lithium Metal granulate FOB Hamburg in Germany for this quarter is USD 41361/MT.
