SMM December 4 News:
Electrolyte prices increased this week, with average prices for electrolyte for ternary power batteries, LFP, and LMO at 35,250 yuan/mt, 33,500 yuan/mt, and 26,750 yuan/mt, respectively. Cost side, prices of key raw materials such as LiPF6 and VC continued to fluctuate at highs recently, leading to a significant increase in cost pressure for downstream producers, limited market acceptance, and weakened purchase willingness, which to some extent restrained the momentum for further price increases of raw materials, slowing down the upward trend, though prices remained at historically high levels. As a result, overall production costs for electrolytes stayed elevated. Currently in the monthly order negotiation phase, raw material costs are gradually being passed downstream, driving electrolyte prices upward. Demand side, battery cell enterprises maintained a steady production pace this month, sustaining high output levels without significant reductions, providing support for electrolyte prices. Supply side, due to resistance in passing through costs for some orders, which could not be fully transferred downstream, some enterprises still faced loss pressure, weakening production enthusiasm. Considering the supply-demand pattern and cost-side pressure, further upside potential for electrolyte prices is expected.
SMM New Energy Research Team
Cong Wang 021-51666838
Rui Ma 021-51595780
Disheng Feng 021-51666714
Yanlin Lü 021-20707875
Zhicheng Zhou 021-51666711
Mengqi Xu 021-20707868
Xuejie Hu 021-20707858
Bolin Chen 021-51666836
Yizhou Wang 021-51595909
