[SMM Analysis] Market Recovery: Price Increase Trend Observed in Some Separator Materials This Week

SMM March 13 News:

This week, the price of dry-process lithium battery separators showed an upward trend, while the price of wet-process separators remained stable. Analyzing from the supply and demand perspective, with the market recovery, downstream demand increased, and separator companies' operating rates also showed an upward trend. Under the pressure of the previous price war, separator material prices have been suppressed to a low range, leaving separator companies with limited profit margins. Separator companies have shown an intention to stand firm on quotes, with the situation for dry-process separators being particularly severe, as material prices have already pierced the cost line, leading to strong sentiment for price increases among dry-process separator companies. Looking ahead, some new capacities for wet-process separators have not yet reached full production, and the oversupply market structure is unlikely to change in the short term. Against this backdrop, it is expected that wet-process separator companies, in order to secure more market orders in the intense market competition, may trigger another round of fierce price wars. However, given that wet-process separator prices are already at low levels, the extent of future price reductions is expected to be extremely limited.

SMM New Energy Research Team

Cong Wang 021-51666838
Xiaodan Yu 021-20707870
Rui Ma 021-51595780
Disheng Feng 021-51666714
Yujun Liu 021-20707895
Yanlin Lü 021-20707875
Zhicheng Zhou 021-51666711
Haohan Zhang 021-51666752
Zihan Wang 021-51666914
Xiaoxuan Ren 021-20707866
Jie Wang 021-51595902
Yang Xu 021-51666760

Mengqi Xu 021-20707868