【SMM Analysis】Fight to the death！The sentiment of the iron phosphate market is getting stronger

SMM February 28:

After the Lantern Festival, the vast majority of iron phosphate companies have entered the stage of negotiating orders at the end of the month, last week was mostly a tentative inquiry, there was no clear actual order landing, this week is expected to be March iron phosphate orders will gradually become clear.

Iron phosphate: selling price - cost = ?

In terms of price, according to SMM research, iron phosphate enterprises are currently in serious losses. Since last week, there have also been iron phosphate companies that have begun to transmit price "signals" to the downstream, hoping to reduce losses in this way. From the cost side, the cost of the three process routes of iron, sodium and ammonium is higher than the current price of iron phosphate. This is also the dilemma that has to be faced in the current market environment of serious overcapacity.

Catering to low prices or surviving in a dilemma?

After the Spring Festival holiday, it will enter the stage of negotiating orders at the end of the month, and some companies will adjust their pricing strategies during this time period to ensure that losses are minimized.

After the fierce competition of low prices in the iron phosphate industry in the early stage, iron phosphate enterprises have gradually had a clearer understanding, and their business strategies have changed. The low price may get a temporary order, but it cannot bind a stable cooperative relationship with the downstream, so that it is difficult to have long-term and stable returns. Rather than continuing to transfuse, there is no hope of making a profit, and allowing it to develop will lead to an increase in the risk of the capital chain. Even if the depreciation cost of equipment is not calculated, the comprehensive cost is higher than the selling price of iron phosphate at this stage, and it is difficult to ensure the stability of cash flow. Not only iron phosphate, but also the current situation of lithium iron phosphate enterprises.

The quality of iron phosphate is related to the energy density, stability, and safety of the cell. Now lithium iron phosphate enterprises are also promoting the integration process, and the demand for iron phosphate may also be affected. However, compared with the single binding mode of integrated LFP/FP product sequence, the advantage of iron phosphate enterprises is that they have a higher degree of freedom of operation, can improve their competitiveness in terms of product attributes, accelerate the progress of research and development, and conform to the development trend of new energy.