[SMM Analysis] Iron Phosphate Market Sluggish, Demand Is Expected to Recover in March

SMM, February 21:

This week, the iron phosphate market maintained a relatively stable trend. In February, with a slightly weak supply-demand relationship, prices did not experience significant volatility. According to market analysis, although the costs of raw materials such as industrial ammonium and ferrous sulphate provided some support to prices, preventing a noticeable decline, the weakened downstream demand left little room or momentum for further price increases in iron phosphate.

Currently, there remains a certain amount of unsold inventory in the market, which is gradually being digested in an effort to achieve a supply-demand balance. Market transactions generally adopted a cautious approach.

However, looking ahead to March, the market is expected to see a recovery. With the gradual digestion of inventory and the recovery of downstream demand, the production schedules of iron phosphate producers are likely to increase. This not only indicates an improvement in market activity but also presents new development opportunities for the iron phosphate industry.

As spring approaches, the increase in new promotional activities from downstream end-users is expected to boost market demand for iron phosphate. Under the dual effects of reduced inventory and growing demand, the iron phosphate market may witness a more positive trend. Companies remain optimistic about the iron phosphate market in March, anticipating a stronger recovery in new energy power and ESS sectors.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lü 021-20707875

Yujun Liu 021-20707895