For the Quarter Ending September 2024
North America
In Q3 2024, the Lithium Fluoride market in North America experienced a significant downturn, with prices decreasing by 31% compared to the same quarter last year. This sharp decline can be attributed to various factors influencing market dynamics. Weak demand, excess inventory levels, and lackluster procurement activities have all contributed to the negative sentiment in the market. Additionally, poor cost support from upstream markets and increased imports has further pressured prices downward.
Specifically focusing on the USA, which has witnessed the most substantial price changes, the trend has been consistent with the overall North American market. The quarter started with a price decrease of 8%, reflecting the prevailing bearish conditions. The latter half of the quarter saw a further 8% drop in prices, emphasizing the continued downward trajectory.
The quarter concluded with Lithium Fluoride CIF New York Port settling at USD 44313/MT, underscoring the persistent negative pricing environment. Overall, the pricing trend for Lithium Fluoride in Q3 2024 has been overwhelmingly negative, characterized by decreasing prices, subdued demand, and challenging market conditions.
APAC
In Q3 2024, the Lithium Fluoride market in the APAC region witnessed a notable decline in prices, with China experiencing the most significant price changes. Various factors contributed to this downturn, including weak consumer demand, oversupply concerns, and persistently low demand in downstream lithium-ion battery manufacturing industries. Additionally, weak support from the upstream markets had its impact on the product prices in this quarter. The market sentiment for lithium fluoride remained negative throughout the quarter, with prices steadily decreasing. Notably, the pricing environment in Q3 2024 exhibited a 25% decrease compared to the same quarter last year, indicating a substantial downward trend. Moreover, the quarter-on-quarter change recorded a 13% decrease, emphasizing the ongoing price deterioration. Within the quarter, the second half saw a further 8% decline compared to the first half, reflecting a continuous downward trajectory. The quarter concluded with Lithium Fluoride prices settling at USD 42770/MT FOB Guangdong in China, underscoring the prevailing negative pricing dynamics and challenging market conditions.
Europe
Throughout Q3 2024, the market for lithium fluoride in Europe witnessed a continuous decline in prices, reflecting negative sentiment driven by several key factors. The oversupply situation, along with weak market sentiment in Asia and North America, has significantly contributed to the decreasing prices. Additionally, weak support from the upstream markets had its impact on the product prices in this quarter.
Bearish market conditions, coupled with high supply levels and low demand, have exacerbated the ongoing price downtrend. Additionally, challenges faced by European manufacturers in the global chemical market, high production costs, limited consumer demand, and worsening economic conditions have further impacted the lithium fluoride sector as well.
Belgium, in particular, has experienced the most pronounced price changes within the region. The substantial decrease compared to the same quarter last year underscores the difficult market environment. Moreover, the recorded price change from the previous quarter and difference between the first and second halves of the quarter highlight the consistent downward pricing trend.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Lithium Fluoride experienced a period marked by nuanced price adjustments, culminating in a quarter-ending price of USD 58,548/MT CIF New York Port in the USA. The quarter has seen price increases driven predominantly by heightened shipping costs and unseasonal surges in ocean freight demand, as logistical bottlenecks and increased restocking cycles from major importers added strain to the container market.
Elevated freight charges, exacerbated by constraints in shipping capacity and disruptions in major trade routes, significantly influenced the cost structure, leading to higher import costs for lithium carbonate, a precursor in Lithium Fluoride production. In the USA, where the price movements were most pronounced, the trends reflected a complex interplay of steady downstream demand, particularly from the burgeoning hybrid vehicle market, and an oversupplied domestic market.
Despite stable downstream inquiries, the market faced a dichotomy of declining new purchase orders and increasing freight and import costs, which collectively drove prices upwards. Overall, the pricing environment has been characterized as stable with a slight upward sentiment, driven by logistical challenges and evolving demand dynamics, particularly within the North American automotive sector, despite the overarching macroeconomic pressures.
APAC
The second quarter of 2024 has been characterized by stable to slightly increasing prices for Lithium Fluoride in the APAC region. Factors influencing market prices include moderate supply amid steady production rates and heightened demand from downstream industries, particularly automotive and battery manufacturing sectors. Environmental regulations and supply chain disruptions have added pressure on small and medium-sized producers, further impacting the market balance. Additionally, rising upstream costs for lithium carbonate and lithium hydroxide have provided robust cost support for Lithium Fluoride, exacerbating price stability. Focusing on China, the nation has experienced notable price changes, driven primarily by regulatory constraints, production maintenance activities, and fluctuations in raw material availability. Despite these pressures, the overall trend for Lithium Fluoride prices in China showed a stable sentiment with a slight upward trajectory. The seasonality effect was evident with steady market inquiries from automotive and glass manufacturing sectors contributing to a consistent demand. The quarter concluded with Lithium Fluoride FOB Guangdong prices settling at USD 56900/MT. This pricing environment reflects a stable market sentiment, supported by steady demand and moderate supply conditions. The overall sentiment has been stable with a slight inclination towards positive pricing due to consistent downstream demand and firm cost support from upstream raw materials.
Europe
In Q2 2024, the Lithium Fluoride market in Europe demonstrated a largely stable pricing environment. The quarter was marked by balanced supply and demand dynamics, supported by consistent production rates and stable upstream costs, particularly for key raw materials. Despite logistical challenges, such as rising freight charges and congestion in major shipping routes, these did not notably disrupt the market. Demand from downstream industries, especially the electric vehicle sector, showed steady but subdued growth due to reduced subsidies and economic uncertainties affecting consumer spending. In Belgium, Lithium Fluoride prices experienced some fluctuations during the quarter but remained relatively stable overall. An analysis of the price trends throughout the quarter reveals stability, with no significant percentage change between the first and second halves of the period, indicating a steady market sentiment. Overall, the pricing environment has been stable with a slight upward trend, influenced by logistical challenges and shifting demand dynamics, especially in the European electric vehicle manufacturing sector, despite broader macroeconomic pressures.
For the Quarter Ending March 2024
North America
In Q1 2024, the prices of Lithium Fluoride in the North American region experienced a significant decrease. Several factors influenced market prices during this period. The pricing environment for Lithium Fluoride in Q1 2024 can be characterized as negative, with decreasing prices and a lackluster market demand. Firstly, there was a decrease in demand from the downstream industries, resulting in subdued consumer inquiries.
This weak demand was mainly attributed to ample material availability in the domestic market and sluggish market transactions. Additionally, the cost support from the upstream raw materials, such as Lithium Hydroxide and Lithium Carbonate, remained stable, further contributing to the downward trend in prices. Focusing specifically on the USA, the largest price changes were observed.
Compared to the same quarter last year, prices of Lithium Fluoride decreased by 49%. This substantial decline can be attributed to the overall weak market conditions and decreased demand from the automotive industry. The quarter-ending price for Lithium Fluoride CIF New York Port in the USA was USD 57000/MT, reflecting the overall downward trend in prices.
APAC
The first quarter of 2024 has witnessed an overall positive pricing environment for Lithium Fluoride in the APAC region. Several significant factors have influenced market prices during this period. In general, there has been an increase in prices due to low supplies of the product and higher raw material costs. Additionally, the sluggish demand from downstream industries and low operating rates have contributed to the upward trend in prices. China, in particular, has experienced the most significant price changes for Lithium Fluoride.
The domestic market saw improvement in pricing dynamics, supported by low inventories. The production costs have also been affected by higher raw material prices. However, the demand from downstream industries has remained weak, with minimal sales to end consumers. Looking at the quarterly performance, there has been a significant decrease in prices compared to the same quarter last year.
The overall pricing environment for Lithium Fluoride in the APAC region has been positive, with increasing prices due to low supplies and higher raw material costs. In conclusion, the latest quarter-ending price for Lithium Fluoride FOB Guangdong in China is USD 56100/MT.
Europe
During the first quarter of 2024, the Lithium Fluoride market in Europe encountered several obstacles that heavily influenced pricing dynamics. These challenges mirrored those of the previous quarter, with oversupply being a significant factor leading to reduced demand and subsequently lower prices. The persistent sluggish demand from the lithium-ion battery manufacturing sector persisted, as consumers remained cautious amidst declining prices.
Furthermore, the dominance of the Chinese market in both Europe and the United States added to the overall bearish sentiment. Chinese electric vehicle (EV) manufacturers like BYD continued to witness notable sales growth, surpassing Tesla as the leading global electric carmaker, intensifying competition and impacting the profitability of European-based EV companies. Belgium, however, experienced a remarkable surge in sales of battery electric cars, with a notable growth rate of 75.5%.
Nonetheless, the fierce pricing competition among European, US, and Chinese EV manufacturers persisted. Throughout this challenging period, the market faced numerous shutdowns, resulting in disruptions that directly influenced prices. Despite these challenges, there were some minor developments in market transactions for Lithium Fluoride in Belgium during the quarter.
For the Quarter Ending December 2023
North America
During Q4 2023, the Lithium Fluoride market in the North American region remained stable, with moderate supply and a bearish market situation. The demand from the downstream lithium hexafluorophosphate market in the cathode active material (CAM) manufacturing industry remained weak, and purchases were mainly driven by demand. The overall market sentiments stabilized, and the procurement rates from Asian market players remained firm.
The demand from the downstream automotive industry remained firm, and the domestic supply of Lithium Fluoride remained moderate, with a slight decline in imports. The demand from the downstream lithium hexafluorophosphate for CAM production remained weak due to ample material availability in the domestic market.
The percentage change in prices from the previous year's Q4 was -60%, while the percentage change from the previous quarter was -30%. The price percentage comparison between the first and second half of the quarter was -3%. The latest price of Lithium Fluoride CIF New York Port in the USA for the current quarter was USD 57500/MT. No plant shutdowns were reported during the quarter.
APAC
The Lithium Fluoride market in the APAC region during Q4 2023 remained stable with high supply and low to moderate demand. The market sentiments for Lithium Fluoride remained stable in the Indian domestic market with a marginal increase in prices. In China, the market situation was bullish with moderate supply and a slight improvement in demand from the downstream automotive industry. The cost support from the upstream anhydrous hydrofluoric acid market increased slightly, resulting in a slight increment in prices. The market fundamentals are anticipated to stabilize in the Chinese domestic market, and the procurement rate remained low amid sufficient material availability. The percentage change in Lithium Fluoride prices in China from the previous year's Q4 was -55%, while the percentage change from the previous quarter was -25%. The price percentage comparison of the first and second halves of the quarter in China was 1%. The latest/quarter-ending price of Lithium Fluoride FOB Guangdong in China for Q4 2023 is USD 54500/MT. Overall, no major developments were observed in the Lithium Fluoride market in the APAC region during Q4 2023.
Europe
In the fourth quarter of 2023, the Lithium Fluoride market in Europe demonstrated a mixed pricing trend. In the initial period, primarily due to weak demand from the downstream sector, low import prices, and limited inquiries. In Belgium, the price of lithium fluoride has experienced a consistent decline, largely as a result of a significant drop in demand from battery manufacturing especially in the lithium hexafluorophosphate industry during this quarter, alongside subdued consumer inquiries. The deteriorated business sentiments throughout the European region also played a role in maintaining a prolonged downward trend in the pricing of Lithium Fluoride. The sluggish state of business, as indicated by the HCOB Eurozone Manufacturing PMI, worsened the market's decline. Furthermore, the European chemicals market saw a decrease attributed to both low demand and increasing energy prices. During the fourth quarter, battery manufacturers exhibited a lack of enthusiasm in expanding their orders. Instead, they adopted a prudent approach, particularly anticipating additional price reductions and prioritizing long-term orders. Regarding the supply aspect, the availability of Lithium Fluoride remained moderate in the European region, with market participants consistently importing the product.
