SMM February 12:
Electrolyte prices remained stable this week, with average prices for electrolyte for ternary power battery, LFP, and LMO at 32,750 yuan/mt, 31,000 yuan/mt, and 24,000 yuan/mt, respectively. Cost side, core raw materials such as LiPF6 and VC were affected by the approaching Chinese New Year holiday. Downstream electrolyte enterprises mostly planned inventory in advance, prioritizing the consumption of previously purchased raw materials, and their willingness for new purchases weakened significantly. Upstream raw material producers' willingness to reduce prices for shipments also weakened noticeably compared to the previous period, with most enterprises opting to maintain stable prices. Market transactions were relatively sluggish, and overall prices remained relatively stable. The stability on the cost side helped maintain stable electrolyte market prices. Demand side, the industry is currently in the traditional consumption off-season, with overall market demand showing weakness. Automakers reduced their production schedules, leading to an overall decline in production schedules for power battery enterprises. Although the ESS sector maintained some demand resilience, production is expected to see a slight decrease due to fewer working days in February. Overall, battery cell production schedules were adjusted downward accordingly, directly leading to a synchronous decline in procurement demand for electrolyte. Supply side, electrolyte enterprises continued the "produce based on sales" model. Affected by reduced procurement demand from downstream, most electrolyte enterprises proactively lowered production, resulting in a synchronous contraction on both the supply and demand sides. Considering the current changes in the supply-demand pattern and the cost side, electrolyte prices are expected to remain stable 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
