Updated Nov 17, 2022 09:46

Market for Lithium Oxide and Hydroxide in Ukraine

Market Overview
In , the Ukrainian lithium oxide and hydroxide market increased by % to $, rising for the third year in a row after two years of decline. Overall, consumption, however, continues to indicate a deep slump. Lithium oxide and hydroxide consumption peaked at $ in 2007; however, from 2008 to , consumption failed to regain momentum.


Consumption
In , after three years of growth, there was significant decline in consumption of lithium oxide and hydroxides, when its volume decreased by -% to tons. Overall, consumption showed a deep downturn. Lithium oxide and hydroxide consumption peaked at tons in 2007; however, from 2008 to , consumption failed to regain momentum.

The value of the lithium oxide and hydroxide market in Ukraine shrank to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption showed a abrupt curtailment. Over the period under review, the market reached the maximum level at $ in 2007; however, from 2008 to , consumption remained at a lower figure.


Market Forecast
Depressed by shrinking demand for lithium oxide and hydroxide in Ukraine, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Lithium oxide and hydroxide market in Ukraine consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, Ukraine relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately ( percentage point) over the period under review.


Trade Balance
Ukraine remains a net importer of lithium oxide and hydroxide; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.