In July, China's iron phosphate production was 148,000 mt, stable MoM, up 21% YoY. While overall production in July did not change much compared to June, there were increases and decreases among producers. The increase was mainly due to higher order demand from downstream customers, leading to full capacity utilization. The decrease was due to equipment maintenance or significant losses per ton of iron phosphate, with some producers reducing production due to financial pressure and rejecting low-price orders to maintain normal operations. Different producers faced varying situations, with differences in downstream customer groups, leading to varied actual production conditions.
On the cost side, prices of industrial ammonium and phosphoric acid softened in July, leading to lower costs; the price of iron phosphate also softened compared to before. Market expectations for August are gradually strengthening, with iron phosphate production expected to continue increasing driven by demand from downstream cathode materials and battery cells. It is estimated that China's iron phosphate production in August will be 153,200 mt, up 4% MoM, up 26% YoY.
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