[SMM Data] July LiPF6 Production Decreased Month-on-Month, Output Expected to Rebound Next Month

In July 2024, the production of LiPF6 decreased by 3.7% month-on-month, and the expected increase in August is 5.8%.

In July 2024, China's LiPF6 production was 14,300 mt, down 3.7% MoM and 2.5% YoY. The growth rate of end-user market demand slowed, leading to a slight overall decline in demand. The operating rate of LiPF6 factories decreased compared to the previous month. Due to the decline in lithium carbonate prices, some enterprises adjusted their operating strategies to prevent losses from falling finished product prices, opting for production halts or reductions. Orders were mainly on a cash-and-carry basis, with low inventory stocking intentions. Meanwhile, the operating rate of battery cell enterprises slightly decreased compared to June. LiPF6 factories adjusted production according to market demand, resulting in a slight drop in output.

In July, the prices of lithium carbonate and lithium fluoride both declined, leading to adjustments in LiPF6 prices. The price changes gradually transmitted to LiPF6, causing its price to fall.

Looking ahead to August, end-user demand is expected to rise, driving up the demand for LiPF6. It is anticipated that China's LiPF6 production in August will reach 15,125 mt, up approximately 5.8% MoM and 0.8% YoY.