Lithium Iron Phosphate Contract Negotiations Underway at End of March, Significant Improvement in Order Outlook Expected [SMM Weekly Review]

SMM News on March 29:

[Lithium Iron Phosphate] The trend of improving demand for lithium iron phosphate is becoming increasingly clear.

This week, lithium iron phosphate prices rose slightly. On the raw material side, the prices of upstream raw materials phosphoric acid and industrial ammonium for lithium iron phosphate remained firm. Currently, the mainstream lithium iron phosphate transaction price at the end of the month is above 10,000 yuan/ton. However, lithium iron phosphate companies with resource advantages still have some room for concessions. This week is the last week of March, and the market feedback indicates that some orders have not been finalized yet. It is expected that both parties will continue to follow up on new orders next week.

In terms of production, lithium iron phosphate companies produce based on sales. Lithium iron phosphate orders are expected to increase significantly in April, and lithium iron phosphate companies' operating rates will rise.

This Friday, SMM's lithium iron phosphate price was 10,000-10,800 yuan/ton, with an average price of 10,400 yuan/ton, up 25 yuan from last week.

[Lithium Iron Phosphate for Lithium-Ion] This week, lithium carbonate prices fell, and lithium iron phosphate prices eased slightly.

This week, on the cost side, although lithium carbonate prices eased, cathode manufacturers still found it difficult to negotiate discounts with lithium salt plants, and lithium iron phosphate prices remained relatively firm. Since March, lithium iron phosphate cathode manufacturers have passed on the rising lithium carbonate costs to downstream customers, and some battery cell manufacturers have gradually accepted lithium carbonate prices without discounts. If battery cell manufacturers still want a discount, cathode manufacturers will raise processing fees; if battery cell manufacturers accept prices without discounts, cathode manufacturers will offer some concessions on processing fees.

Currently, it appears that production in April will improve compared to March, with the downstream energy storage and power markets recovering. Some leading large manufacturers will see relatively significant increases. Companies whose production fell short of expectations in the first quarter will strive to meet their targets in the second quarter.

This Friday, SMM's lithium iron phosphate (for power type) price was 43,100-44,100 yuan/ton, with an average price of 43,600 yuan/ton, up 100 yuan from last week.