Lithium Phosphate Price Trend and Forecast

Lithium Phosphate Regional Price Overview

Get the latest insights on price movement and trend analysis of Lithium Phosphate in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Lithium Phosphate Price Trend for the Q1 of 2024

Asia

The first quarter proved to be a challenging one for the lithium phosphate market as its primary driver exerted a negative influence on its price trend. Throughout the quarter, the downstream battery sector bore a bearish tone as consumer confidence in the sector fluctuated, and the market experienced a sliding number of new inquiries. In view of sluggish market sentiments, the inventories rose beyond the expectations of the trader, due to which they had to resort to destocking measures.
 

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This destocking activity was observed evidently in the Chinese, South Korean, and Japanese markets. Another factor that supported this downtrend in the prices of lithium phosphate was the fall in upstream raw material prices. Along with this, the loss of export volumes due to the diversion of the Red Sea route and increased transport expenses further increased the hesitation of the end-user industries.

Europe

The European countries noted the deacceleration in the momentum of the lithium phosphate market during the Q1 of 2024. The lithium-ion battery market registered a weak demand, and the oversupply of the commodity led to the fall of lithium phosphate prices. This cautious stance of the consumer sector was the direct reflection of increasing economic tensions and excessive inflationary pressure.

As the quarter progressed, the profit margins of the manufacturing sector shrank by a significant margin. Eventually, production also slowed, but it had little to no effect on the inventory levels. The market was further challenged by the limited trading activity with the Asian countries amid the rising uproar at the Red Sea region and increasing instances of Houthi attacks on US-UK shipments.

North America

In the first quarter of 2024, the US lithium phosphate market experienced a continued downturn due to ongoing weak demand and an oversupplied market. Increased manufacturing activities in North America exacerbated an already high inventory situation as efforts to mine, extract, and refine lithium intensified, heightening concerns within the trading sector. However, towards the end of the quarter, lithium phosphate prices began to stabilize, buoyed by a rise in trading activities and the opening of new export routes.

Exxon Mobil Corp also launched plans to produce battery-grade lithium phosphate through a new direct lithium extraction project in Arkansas, aiming to lessen the market's dependence on overseas imports. The energy storage sector's rapid advancements further supported lithium phosphate prices. Despite challenges such as higher interest rates affecting capital costs, the stabilization of lithium phosphate prices towards the end of the quarter reflected a positive outlook for traders.

Analyst Insight

According to Procurement Resource, the price trend of Lithium Phosphate is estimated to be driven by the limited availability of raw materials and slow and gradual improvement in the sales figures of the downstream industries.

Procurement Resource provides latest prices of Lithium Phosphate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.