Nickel ore inventory at national ports slightly decreased by 230,000 wmt

In July 2025, the total monthly domestic production of lithium carbonate exceeded 80,000 mt for the first time, with a 4% MoM increase and a significant 26% YoY increase. The main drivers of production growth were the emergence of hedging opportunities in the futures market, prompting lithium chemical plants with previously low operating rates to gradually resume production, significantly boosting the industry's overall supply capacity. By raw material type:

In July, domestic iron phosphate production increased by 10% MoM and surged by 70% YoY.

In previous summers, the fertilizer market entered the traditional consumption off-season, and industrial-grade MAP prices often came under pressure due to shrinking agricultural demand. However, this year differs from previous years as industrial-grade MAP prices did not experience a significant decline during the off-season but remained relatively high compared to the same period in previous years, showing an unusual trend of "stronger-than-usual off-season."

In June, the domestic iron phosphate market showed a steady yet increasing trend, with production increasing slightly by 2% MoM and significantly by 56% YoY.

Amidst the rapid development of the new energy industry, lithium iron phosphate (LFP) has emerged as a core material in the NEV and ESS sectors, leveraging its advantages of low cost and high safety. However, the industry is facing challenges such as a shortage of high-quality capacity, fierce competition, and declining profitability, making technological innovation urgent. In this context, titanium-doped iron phosphate technology stands out as a key breakthrough for enhancing material performance and driving industrial development.

In April, the domestic iron phosphate market exhibited a "high YoY growth, stable MoM" operational trend, with production up 60% YoY and remaining stable MoM.

In March, domestic FP production increased by 10% MoM and surged by 81% YoY. In terms of supply, most FP manufacturers raised their production schedules in March compared to February, leading to a significant boost in supply. Some companies had ample orders, operating their production lines at full capacity. Additionally, new entrants in the FP market are gradually ramping up their capacity, with production expected to continue rising in the future.

Recently, an SMM survey revealed the following about the iron phosphate market: (1) Due to strong downstream demand, iron phosphate companies have experienced delays in order deliveries, with some orders not being fulfilled on time, leading to prices remaining firm or slightly increasing. Meanwhile, some LFP companies have expanded their capacity, seeking outsourcing and other methods, which have driven up the operating rates of some small and medium-sized LFP companies. (2) During the October negotiation season in the fourth quarter, iron phosphate companies generally hold an optimistic view of the market and maintain a bullish stance; however, LFP companies tend to adopt a wait-and-see approach, expecting the market to remain stable.

According to the SMM survey, China's iron phosphate output in H1 2024 was 705,200 mt, up 42% YoY. Among them, the output of non-integrated producers was 337,7900 mt, accounting for 47.9% of the total output.

Yesterday, low-sulfur coking coal in Lvliang, Shanxi was quoted at 2,100 yuan/mt, while the quotation was 2,400 yuan/mt in Linfen and 2,100 yuan/mt in Tangshan.