LiPF6 Output in Jan Fell 17% due to Sagging Demand

SHANGHAI, Feb 10 (SMM) - China's lithium hexafluorophosphate (LiPF6) output stood at 8,239 mt in January, down 17% MoM.

In terms of demand, the closure of battery cell makers during the Chinese New Year (CNY) holiday and the low season in January together weighed on the demand for electrolyte. Meanwhile, the LiPF6 prices were on a downward path, and electrolyte producers mainly took a wait-and-see stance. As a result, the demand for LiPF6 in January shed sharply.

On the supply side, poor downstream demand, coupled with narrowed profits on fierce price competition, pressured most LiPF6 manufacturers to close during the CNY holiday, except top-tier manufacturers who maintained low capacity. Generally, the market supply dropped to a rather low level.

In February, the electrolyte manufacturers will resume purchasing one after another, but most of them will primarily stockpile to meet rigid demand. The operating rates of LiPF6 enterprises will pick up, but the production schedules will barely change on account of inventory. It is estimated that China's LiPF6 output in February will be 8,929 mt, up 8% month-on-month.