SHANGHAI, Oct 13 (SMM) –

In September, China's LFP production was 127,490 mt, down 2.5% MoM and an increase of 13.8% YoY. Production from January to September rose 46.5% YoY. The cost of LFP was affected by the continuous decline in the price of its main raw material lithium carbonate, resulting in a continuous decrease in overall production costs. On the supply side, due to the decline in the price of lithium carbonate, downstream cautious purchasing resulted in reduced production by LFP companies. LFP companies were willing to sell at low prices to reduce the sustained losses of their products. LFP companies prioritized destocking. In terms of demand, battery cell companies, especially energy storage battery cell companies, were not actively purchasing LFP due to weak terminal demand. The perceived demand boom is unlikely to occur in October, as downstream and terminal markets are flat, and there is likely to be no pre-holiday stocking willingness in the fourth quarter. Therefore, LFP enterprises are cautious in production scheduling, resulting in reduced production. The LFP production in October 2023 is expected to be 118,540 mt, a decrease of 7.0% MoM and an increase of 31.0% YoY.