LFP Prices To Fall Further In April After Sharp Decline In March

SHANGHAI, Apr 19 (SMM) –LFP: The monthly average price stood at 117,000 yuan/mt in March, down 18% MoM and 28% YoY. The downward trend is expected to extend into April.

Orders from power battery market barely improved in March. What’s worse, customers from energy storage sector delayed placing orders as LFP prices extended declines. In the second half of March, some buyers either cancelled orders or delayed order pick-up. Following aggressive price cuts by gasoline car manufacturers in early March, the impact had spilled over into the NEV market in the second half of the month. With growing wait-and-see sentiment among consumers, the finished product inventory of LFP plants accumulated, sending its prices down steadily. Falling lithium carbonate and iron phosphate prices brought down the costs of LFP plants.

With end demand showing no signs of significant recovery, LFP prices are forecast to drop further in April.