SMM, April 30:
This week, the price of electrolyte has declined. Specifically, the average prices of electrolytes for ternary NEV batteries, LFP batteries, and LMO batteries have dropped to 22,500 yuan/mt, 18,450 yuan/mt, and 14,700 yuan/mt, respectively. Cost side, the price of the core raw material, LiPF6, has continued to fall, while the prices of solvents and additives have remained stable, leading to a decline in the overall manufacturing cost of electrolytes. On the demand side, the recovery process of the downstream new energy battery market has fallen short of expectations. The recent dynamic adjustments in tariff policies have further exacerbated the weak market demand. Facing the uncertainties in the market environment, terminal customers have generally adopted a cautious approach to production and stockpiling, adhering to the principle of purchasing as needed and strictly controlling inventory levels, resulting in the inability of the demand side to form an effective boost. On the supply side, major enterprises in the industry have continued to deepen the "produce based on sales" operational model, accurately matching market demand and reasonably planning production schedules. Against the backdrop of the prolonged low prices of electrolytes, the industry's profit margins have been significantly compressed. Some enterprises, considering cost control and loss prevention, have proactively avoided orders with excessively low prices and significant losses, leading to a low overall operating rate in the industry. Based on a comprehensive assessment, considering that it is difficult to achieve substantial improvements in the supply-demand relationship in the short term and the lack of strong stimulating factors in the industry, it is expected that the price of electrolytes will continue to fluctuate rangebound in the coming period.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lv Yanlin 021-20707875
Zhou Zhicheng 021-51666711
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
