SMM February 5 News:
This week, the market price of electrolyte pulled back, with the average prices of electrolyte for ternary power batteries, LFP, and LMO at 33,500 yuan/mt, 31,750 yuan/mt, and 24,500 yuan/mt, respectively. Cost side, the core raw material for electrolyte, LiPF6, faced dual pressures from ample market supply and weakening demand, coupled with its previous price entering a downward trend. Purchase willingness among electrolyte enterprises remained low, further driving its price to continue declining. Meanwhile, prices of VC and some solvents also dropped due to weak downstream demand. Multiple downward pressures on the cost side gradually transmitted to the electrolyte product end, ultimately leading to a synchronous decline in electrolyte prices. Demand side, the industry is currently in the traditional off-season. Although demand for ESS battery cells remained stable, auto sales expectations in the power battery sector weakened. Combined with fewer working days in February, the overall production schedule of battery cell enterprises was scaled back, and electrolyte market demand also pulled back accordingly. Supply side, electrolyte enterprises continued the produce based on sales model. Affected by reduced orders from downstream battery cell manufacturers, enterprise operating rates were lowered accordingly, and production pulled back. Considering the current changes in the supply-demand pattern and the downward trend on the cost side, the market price of electrolyte is expected to continue its downward trend in the short term.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lü Yanlin 021-20707875
Zhou Zhicheng 021-51666711
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
Chen Bolin 021-51666836
Wang Yizhou 021-51595909
