SMM

This week, lithium hydroxide prices continued to decline. On the demand side, most buyers primarily source lithium hydroxide through long-term agreements and customer-supplied materials. Therefore, even with some increase in demand, spot orders for procurement remain scarce. On the supply side, most companies are maintaining a relatively stable production pace, with generally high inventory levels. There has been some relaxation in their stance of continuously driving down and standing firm on quotes to downstream buyers, leading to a decline in transaction prices. Currently, with lithium carbonate prices at a low level and lithium ore prices also declining, the cost support for lithium hydroxide has weakened somewhat. Coupled with the current lack of expectations for a significant increase in demand, lithium hydroxide prices are more likely to fall than rise.