[SMM Analysis] The iron phosphate market saw a slight increase amid stability in June, with prices struggling to find support amid efforts to boost sales volume and secure orders

SMM July 1st News:

In June, the domestic iron phosphate market showed a steady growth trend, with production increasing slightly by 2% MoM and significantly by 56% YoY. On the supply side, enterprises maintained a stable production pace. Although a few enterprises underwent maintenance, it did not significantly impact the overall production, with limited monthly increases.

On the demand side, some downstream LFP enterprises saw an increase in orders, directly boosting the sales growth of upstream iron phosphate enterprises. Additionally, enterprises aimed to achieve their mid-year sales targets and build momentum for business negotiations in H2, enhancing market activity.

On the cost side, the prices of industrial-grade MAP and phosphoric acid remained stable in June. Although the price of ferrous sulphate increased, the overall cost fluctuation was relatively small. Due to the lack of cost support, the price of iron phosphate continued to weaken, with some enterprises more actively reducing prices to ensure shipments.

In July, with the resumption of production by enterprises undergoing maintenance and the gradual release of capacity, iron phosphate production is expected to increase slightly. It is projected that production will increase by 4% MoM and 61% YoY in July.

Enterprises will continue to monitor changes in costs and demand while ensuring supply, adjusting production and sales strategies to adapt to market dynamics.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875