Raw material side, as the tight supply gradually eased, industrial ammonium prices stabilised. The price of phosphoric acid dipped slightly, and the price of hydrogen peroxide recently fell below 1,000 yuan/mt.
Although costs were controlled, iron phosphate producers still suffered losses. Some producers chose to hold prices firm in June, quoting around 10,800-11,000 yuan/mt. Both large and retail orders in the iron phosphate market have been transacted within this price range. Due to high cost pressure and declining market expectations in June, some producers reduced production in June, lowering market supply in hopes of driving up prices.
How did the LFP market respond to this round of price hikes?
Due to the decline in the price of the main raw material, lithium carbonate, LFP prices fell accordingly. Meanwhile, producers could negotiate about 5% off recently when purchasing lithium carbonate, but it is still somewhat difficult to procure large quantities of low-price lithium carbonate.
Against the backdrop of rising iron phosphate prices, LFP producers are making their supply systems more diversified. Some new iron phosphate projects have been put into production, and LFP producers are verifying the iron phosphate products from some new plants to enrich their supply systems.
In June, the overall LFP demand is expected to decline. To cope with it, LFP producers cut production to control inventory.
In summary, the iron phosphate market is facing challenges of cost pressure and supply adjustments, while the LFP market is affected by raw material price fluctuations and demand changes. Participants in both markets are striving to respond to the current market environment by adjusting supply and production strategies, seeking new suppliers, and controlling inventory.
