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. On the supply side, multiple factors intertwined. Some iron phosphate producers reduced their supply in phases due to maintenance plans, while orders for integrated large-scale producers declined, leading to a corresponding decrease in their self-supplied iron phosphate production. However, enterprises with price advantages significantly boosted their orders and production due to their market competitiveness. Through the dynamic balance between reduced and increased production, the iron phosphate supply ultimately remained flat compared to the previous month.
On the demand side, there was no significant growth in downstream LFP market demand in April. Overall procurement demand remained stable, failing to exert a strong boosting effect on the iron phosphate market. On the cost side, industrial-grade MAP prices remained high in the first half of April, only pulling back slightly in the latter half. Despite the reduction in raw material costs, the current iron phosphate prices still struggle to fully cover the costs. Coupled with the ongoing intense market price competition, enterprises' profit margins are continuously being compressed. Some iron phosphate producers have planned to conduct maintenance or cut production on their production lines in May.
In May, the production schedule increase in the iron phosphate market is expected to significantly slow down, with the increase mainly concentrated among producers with new capacity and those with price or resource advantages. It is projected that iron phosphate production will rise 4% MoM and 40% YoY in May, potentially further reshaping the market competition landscape.
