[SMM Analysis] Iron Phosphate Market Remained Stable in April, with Enterprises Under Pressure and Prices Difficult to Increase

SMM, April 30:

In April, the domestic iron phosphate market exhibited a "high year-on-year growth, stable month-on-month" performance, with production up 60% YoY and remaining stable MoM. On the supply side, multiple factors intertwined. Some iron phosphate producers reduced their supply in phases due to maintenance plans, while orders from integrated large-scale producers declined, leading to a corresponding decrease in self-supplied iron phosphate production. However, enterprises with price advantages significantly increased their orders and production due to market competitiveness. Through the dynamic balance of reduction and increase, the iron phosphate supply ultimately remained flat compared to the previous month. On the demand side, there was no significant growth in downstream LFP market demand in April, and purchasing demand remained generally stable, failing to form a strong boosting effect on the iron phosphate market.

On the cost side, industrial-grade MAP prices remained high in the first half of April and only dropped back slightly in the second half. Despite the reduction in raw material costs, the current iron phosphate prices still struggle to fully cover the costs. Coupled with the ongoing intense market price competition, the profit margins of enterprises are continuously compressed. Some iron phosphate producers have planned to conduct maintenance or cut production on their production lines in May.

In May, the production schedule increase in the iron phosphate market is expected to significantly slow down, with the increase mainly concentrated among producers with new capacity and those with price or resource advantages. It is projected that iron phosphate production will rise 4% MoM and 40% YoY in May, potentially further reshaping the market competition landscape.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875