Price transmission is slow, making it difficult forLFP cathode makers to achieve profitability

【Iron Phosphate】Iron phosphate prices have seen a slight increase, with a noticeable increase in market orders in April.

This week, the price of iron phosphate has trended upwards. On the raw material side, phosphate prices may see a slight increase after the Qingming Festival, while the price of industrial ammonium remains stable. Although iron phosphate prices have seen a slight upward trend recently, there is still room for concessions in actual transaction prices. Price negotiations are expected to continue in April, making significant upward movements in iron phosphate prices difficult to achieve and the current loss situation for iron phosphate companies challenging to reverse. With continued growth in demand in the iron lithium market in April, some iron phosphate companies have sufficient production orders and have increased their operating rates.

April 7th, SMM price for iron phosphate was 10,050-10,800 yuan/ton, with an average price of 10,425 yuan/ton, an increase of 25 yuan from the previous week.

【Lithium Iron Phosphate】Lithium iron phosphate prices are slow to transmit, with expectations of warming demand in April.

This week, lithium carbonate prices have seen a slight increase, but the transmission of lithium iron phosphate prices has been relatively slow, with small changes in prices. With considerable production increases from iron lithium companies in March, it is expected that production will continue to increase in April. As the price war among car manufacturers continues and new models are launched, expectations for increased orders from downstream leading battery cell manufacturers are evident, with second and third-tier battery cell manufacturers gradually resuming operations. Starting from March, there has been an improvement in sales data in the power market, and lithium iron phosphate cathode manufacturers are optimistic about the increase in market demand. However, the challenge facing cathode manufacturers is how to maintain profitability in an environment where downstream business conditions are stringent.

April 7th, SMM price for lithium iron phosphate (power type) was 43,200-44,200 yuan/ton, with an average price of 43,700 yuan/ton, an increase of 100 yuan from the previous week.

For more informatiom, please contact cathycai@smm.cn