[SMM Analysis] Supply and demand of iron phosphate remained stable in May, while prices may be adjusted in June due to a rush to increase sales volume

SMM May 30 Report:

In May, the domestic iron phosphate market remained stable, with production up 2% MoM and a significant increase of 38% YoY.

On the supply side, the resumption of production by integrated LFP enterprises drove an increase in self-supplied iron phosphate production. Enterprises with cost advantages in raw materials secured more orders due to their stable production lines. Production at enterprises with stable prices remained flat compared to the previous month.

On the demand side, downstream demand for LFP saw a rebound compared to April. In terms of costs, prices of industrial-grade MAP and phosphoric acid remained stable, while ferrous sulphate prices rose, keeping iron phosphate production costs at a high level.

As June approaches, the period for pushing for mid-year targets has arrived. To capture market share, enterprises will boost sales through discounts and promotions. Meanwhile, new capacity will gradually come online and undergo downstream validation. It is expected that iron phosphate production will increase by 4% MoM and 59% YoY in June, potentially intensifying market competition.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lv 021-20707875