China April Iron Phosphate Output and Forecast for May

SHANGHAI, May 16 (SMM) - China produced 65,714 mt of iron phosphate in April, down 5% month-on-month, but up 83% year-on-year. The cumulative output surged 84% YoY in January-April. The production and sales of iron phosphate both fell last month. Inventory was piling up across the entire battery industry chain in the first quarter. LFP output in April rose only slightly from March, thus demand for iron phosphate did not pick up significantly. LFP plants still focused on destocking in April. In terms of cost, phosphoric acid prices fell amid poor demand.

SMM predicts that the domestic iron phosphate output will stand at 72,245 mt in May, up 9% MoM and 61% YoY, driven by low costs and expectations for demand recovery.