LFP prices to extend decline amid muted demand

In the week ending November 23, the price of LFP continued to decline, with most transactions occurring under long-term contracts. This decline was partly due to lower lithium salt prices, which reduced costs. LFP manufacturers adjusted their production in line with sales, aiming to reduce inventory levels. Market expectations for a year-end surge in demand from both the EV and energy storage sectors were not strong. Consequently, companies prioritised reducing their raw material inventories, leading to a subdued demand for LFP. As a result, the price of LFP is expected to keep falling.