【SMM Analysis】Iron Phosphate Market Gradually Recovered in March, Production Increased Significantly Compared to February

Published: Apr 1, 2025 09:51

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SMM Analysis: Iron Phosphate Market Gradually Recovered in March, Production Increased Significantly Compared to February. SMM, April 1: In March, domestic iron phosphate production rose 10% MoM and surged 81% YoY.

SMM April 1 News: In March, domestic iron phosphate production increased by 10% MoM and surged by 81% YoY. In terms of supply, most iron phosphate manufacturers raised their production schedules in March compared to February, leading to a significant boost in supply. Some companies had ample orders and operated their production lines at full capacity. Additionally, new entrants in the iron phosphate market are gradually ramping up their capacity, with production expected to continue rising in the future.

On the demand side, the LFP market began to grow steadily in March. However, some companies saw their orders reduced by battery cell manufacturers due to pricing and project support issues. Meanwhile, other companies experienced a notable increase in orders due to their product and pricing advantages, particularly those requiring externally purchased iron phosphate, driving overall demand growth.

Cost side, March was the spring plowing and fertilizer preparation season, and the price of industrial-grade MAP, a key raw material for ammonium-based iron phosphate production, surged significantly. This led to a substantial rise in production costs for ammonium-based iron phosphate, prompting companies to consider price hikes in April.

In April, as the lithium battery market gradually enters its peak season, iron phosphate manufacturers are expected to further increase their production schedules, with production likely to grow by 5% MoM and 68% YoY.

SMM New Energy Research Team
Cong Wang 021-51666838
Rui Ma 021-51595780
Disheng Feng 021-51666714
Yanlin Lv 021-20707875

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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