I. Lithium hydroxide price trend:

Lithium hydroxide market prices fell in August, according to a large list of business associations. The average price quoted by domestic lithium hydroxide enterprises was 77,333.33 yuan/ton on the 1st day and 76,000 yuan/ton on the 31st day. The market fell by 1.72% in the month. In a three-month cycle, it fell 15.08% year-on-year.

II. Market analysis:

Products: The market price of lithium hydroxide fell in August. At present, the production of lithium hydroxide is gradually increasing, the overall demand is limited, the willingness of manufacturers to ship increases, and the market lacks strong favorable factors to support. Up to 31 days, Shanghai Yulun industrial grade lithium hydroxide quoted 78000 yuan/ton, Zigong Tongfarong industrial grade lithium hydroxide quoted 74000 yuan/ton, and Shanghai Oujin industrial grade lithium hydroxide quoted 76000 yuan/ton. The specific transaction price is simple and realistic.

Industry chain: In August, the price of lithium carbonate in the upstream East China market continued to show a downward trend, and the main reason for the downward trend was that there was no obvious positive trend in demand. As of August 31, the average price of industrial grade lithium carbonate in East China was 60,000 yuan/ton, with a monthly increase or decrease of -5.96%, and that of battery grade lithium carbonate in East China was 67,000 yuan/ton, with a monthly increase or decrease of -7.71%.

Industry: According to the price monitoring of business associations, in August 2019, there were 37 commodities rising annually in the chemical sector, of which 15 commodities increased by more than 5%, accounting for 17.9% of the monitored commodities in the sector; the first three commodities were hydrogen peroxide (39.93%), acetic acid (20.90%) and butadiene (14.47%). There are 39 kinds of products with a decline of more than 5%, accounting for 15.5% of the monitored products in this sector. The products with the first three declines are yellow phosphorus (-27.58%), epichlorohydrin (-23.28%) and sulfur (-19.38%). The average increase and decrease in August was 0.03%.

3. Future market forecast:

Lithium hydroxide analysts at business associations believe that the upstream price of lithium carbonate has fallen, which has a cost impact on the lithium hydroxide market. At present, the supply of lithium hydroxide Market is abundant, but the downstream consumption speed is insufficient to follow up, and the contradiction between supply and demand appears. It is expected that in the short term, the market of lithium hydroxide will be dominated by weak consolidation and operation.