China Iron Phosphate Production Hit A New Record High In May And Poised For Further Growth In June

SHANGHAI, Jun 9 (SMM) –China produced 97,857 mt of iron phosphate in May, up 34.3% month-on-month and 119% year-on-year. The monthly output hit a new record high. The cumulative output surged 96% YoY in January-May. The production and sales of iron phosphate both rose in May. Sharply increasing LFP production boosted iron phosphate demand, which drove medium-sized and large iron phosphate producers to beef up production. In terms of cost, the phosphorus chemical market weakened, thereby reducing iron phosphate cost. Despite thin profits and severe overcapacity, medium-sized and large iron phosphate enterprises raised production and locked in orders by leveraging their advantages in technology and sales channels.

The current raw material costs are relatively low. With the ramp-up of new capacity and improving market expectations, iron phosphate production is expected to grow 23.1% MoM and 130.9% YoY to 120,510 mt in June.