SHANGHAI, Jan 5 (SMM) - The average price of LiPF6 stood at 249,590 yuan/mt in December, down 15% MoM. With regard to raw materials, the PCl₅ prices fell to a low level due to the release of new capacity, the prices of hydrofluoric acid rose slightly, and more importantly, the prices of lithium carbonate, which accounts for a large proportion of the cost, plunged. As a result, the overall cost of LiPF6 fell. On the demand side, the LiPF6 demand from electrolyte manufacturers dropped following the destocking of battery cell factories at the end of the year. Although some LiPF6 manufacturers ran below capacity to adjust the supply in the market, some other producers still faced pressure from accumulated inventory.

Looking ahead to January, the LiPF6 demand from electrolyte manufacturers may be dragged down by a few factors including the Chinese New Year holiday, the removal of new energy vehicle subsidies and the impact of the covid-19 across the country. The output of LiPF6 in January is still inclined to go down since some manufacturers will be off on holiday. Besides, the prices of lithium carbonate are still on a downward trend, and the market continues to stand wait-and-see when it comes to purchase. In this context, it is expected that the LiPF6 prices will continue to decline.