China's Ferric Phosphate Output In September And Forecast For October

SHANGHAI, Oct 13 (SMM) –

In September, China's ferric phosphate production was 116,100 mt, – down 4.6% MoM and an increase of 29.1% YoY. Output in the first nine months surged 79.3% YoY. The production was lower than market expectations. Downstream LFP companies reduced raw material purchases and lowered production rates to avoid losses from falling lithium prices, resulting in inventory reduction. Downstream companies were unable to complete the pick-up of ferric phosphate orders that were confirmed in late August and early September, leading to some order cancellations or postponements to October. The reduction in downstream demand resulted in a decline in ferric phosphate production. In terms of cost, the production cost slightly increased in September. The prices of phosphoric acid and TMAP increased slightly at the beginning of the month but stabilized later. As for iron sources, ferrous sulphate prices decreased by 30% and iron block prices remained stable. Other auxiliary materials such as hydrogen peroxide increased in price, resulting in a slight increase in overall costs ranging from 100 to 300 yuan/mt. In October, although the price of hydrogen peroxide declined, the production cost of ferric phosphate remained high. It is difficult for the downward transmission of additional costs, and the enthusiasm of ferric phosphate companies for production is average, focusing on fulfilling orders. Ferric phosphate production in October 2023 is expected to be 110,400 mt, –down 5.7% MoM and an increase of 15.6% YoY.