US Lithium Hydroxide Prices Steady in April 2024 Amid Global EV Growth and Panama Canal Relief

Texas, USA: In April 2024, the US Lithium Hydroxide market experienced stability, with balanced market dynamics and consistent prices observed over recent sessions. Demand for Lithium Hydroxide from the downstream Lithum-ion battery sector remained moderate. In response to oversupply, sellers in South American nations Chile and Argentina have continued to lower their quoted prices for Lithium Hydroxide.

In the United States, new vehicle sales experienced growth from January to March 2024, indicating market resilience despite high-interest rates. However, the growth rate of electric vehicle sales slowed during the same period compared to the previous year. Regarding supply, while low-water measures in Panama did not result in significant disruptions to container traffic, the easing of Panama Canal transit restrictions as the region enters the long-awaited rainy season is noteworthy. The Panama Canal Authority has announced its intention to continue relaxing low-water restrictions in response to increasing rainfall levels, eventually benefiting Lithium Hydroxide shipments.

Lithium Hydroxide producers are persistently ramping up production, leading to an expected increase in the import volume of Lithium Hydroxide from overseas in April compared to March. This indicates a general trend of recovery on the supply side. However, in the short term, there hasn't been any significant change in sentiment within the Lithium Hydroxide market, which has limited the liquidity of spot market transactions during periods of low prices.

In addition to the aforementioned factors, the electric vehicle market has been substantially impacted by the ongoing trade disputes between the United States and China. Sanctions and tariffs have heightened tensions, exacerbating the situation, and these effects are anticipated to escalate further, remaining a concern among industry players.

The International Energy Agency (IEA) predicts that electric vehicle (EV) sales will continue to rise in most major markets throughout this year, albeit at a slower rate. It is anticipated that global EV sales will exceed 17 million units, constituting more than a fifth of total global vehicle sales. However, growth is expected to slow down compared to 2023 in key markets. Last year saw nearly 14 million new EV registrations, marking a 35% increase from 2022, with 95% of these sales concentrated in China, Europe, and the US. China is projected to contribute more than half of global EV sales this year, with a 25% increase from the previous year, surpassing 10 million units for the first time.

For April 2024, the assessed prices of Lithium Hydroxide DDP USCG were USD 14,900 per tonne.

Based on data from the ChemAnalyst database, the prices of Lithium Hydroxide are expected to maintain stability in the coming weeks. This forecast is based on strong demand and the arrival of premium-priced Lithium Hydroxide in the domestic market.