SHANGHAI, Dec 26 (SMM) - China produced 93,776 mt of iron phosphate in November, down 2% from November.
On the supply side, the delayed production commissioning plans of some leading iron phosphate companies such as Tianci New Materials and Tongling Nayuan were committed in November, and the production line of Longbai Group was put into production, which promoted the available capacity to increase further. The recent downstream demand weakened and the downstream enterprises intended to lower the prices. Coupled with the increase in the raw material prices, some iron phosphate enterprises adjusted their production schedules, resulting in a slight decline in output.
On the demand side, in the first ten days of November, the downstream enterprises purchased actively to complete the annual production target. In the middle and late ten days, due to the rumours of production reduction at the terminal side, the future LFP demand was uncertain and LFP companies were more cautious about the procurement to keep the inventory low. Dome companies reduce their purchasing amount. As such, the overall market demand for iron phosphate declined slightly. Amid the faded positive effect of subsidy policy, the economic downturn and the intensifying pandemic situation, the demand for iron phosphate may decline further in the future. SMM predicts that the iron phosphate output in December will reach 89,898 mt, down 4% MoM.
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