Another titanium dioxide enterprise cross-border layout of lithium iron phosphate! How is the market performance of iron phosphate under the epidemic situation repeatedly?

SMM April 11: with the vigorous development of the field of new energy vehicles, since the second half of 2020, domestic power battery-related raw materials have been in short supply, driving the prices of related products all the way up. And lithium iron phosphate as an important part of cathode materials, related enterprises in the industrial chain have been in the stage of continuous expansion, and even many enterprises in the titanium dioxide industry are aware of the profit points of this industry and have opened cross-border layouts one after another. for example, leading titanium dioxide enterprises such as Longbai Group, medium Nuclear Titanium dioxide and Anada have planned a large number of iron phosphate and lithium iron phosphate production capacity relying on their comprehensive advantages in raw material cost.

On March 28th, another titanium dioxide enterprise, Jinpu Titanium Industry, announced that the company signed a "Strategic Cooperation Framework Agreement" with the Management Committee of Anhui (Huaibei) New Coal Chemical synthetic material Base on the 26th. It is proposed to build a new energy battery material integration project with an annual output of 200000 tons of battery-grade iron phosphate and 200000 tons of lithium iron phosphate in Anhui (Huaibei) new coal chemical synthetic material base. The total investment of the project is about 10 billion yuan.

It is reported that the project is divided into three phases, the construction cycle is from September 2022 to June 2027.

In order to promote the implementation of the above projects, Nanjing Titanium dioxide, a wholly owned subsidiary of Jinpu Titanium Industry, plans to invest its own funds to set up Anhui New Energy Technology Development Co., Ltd. (provisional name), with a registered capital of 400 million yuan. The announcement shows that the company's business scope includes the production and sales of a series of products, such as phosphoric acid, lithium iron phosphate, sulfuric acid, phosphoric acid and so on.

Jinpu Titanium Industry said that the company set up a wholly-owned subsidiary in this investment. efforts will be made to promote the implementation of the integration project of new energy battery materials such as 200000 tons / year battery grade iron phosphate and 200000 tons / year lithium iron phosphate in Anhui (Huaibei) new coal chemical synthesis material base, which is conducive to improving the company's comprehensive strength and profitability, and is of positive significance to the company's long-term and steady development.

And this is obviously not the end. After announcing an investment of 10 billion yuan in the layout of the new energy track on March 28, the board of directors of Jinpu Titanium Industry passed a bill on the purchase of real estate and related party transactions on March 30. It is proposed to purchase real estate for the Jinpu titanium industry headquarters building and R & D center to cope with the future business growth and active layout of the new energy industry.

It is reported that the total construction area of the property purchased by the company is about 6401.42 square meters, of which 1500 square meters are planned for the New Energy Technology Research Institute to develop and research around new energy battery materials and upstream and downstream industrial chain resources to promote industrial innovation and upgrading.

Stimulated by such two big news, Jinpu titanium industry once closed with a deviation of more than 20% on march 29, march 30 and march 31, and its share price rose rapidly.

From the competition of titanium dioxide enterprises to the field of iron phosphate, we can also see the popularity of iron phosphate track. According to the spot price of SMM, as of April 11, the average spot price of iron phosphate was 26000 yuan / ton, up 250 yuan / ton from the previous trading day.

"Click to view the spot market of SMM new energy products.

SMM recent research shows that the recent domestic epidemic situation is repeated, according to SMM statistics, this round of epidemic caused the iron phosphate industry to reduce the total production of about 1200 tons of iron phosphate production. With the continuation of the containment and control of the epidemic, the data still has the possibility of further upwarding. under the continuous production capacity release of some large iron lithium factories downstream, the actual production expansion progress of iron phosphate enterprises is not as good as that of iron lithium, and the tight situation of supply in the industry has intensified. Under the rising price of iron phosphate, some iron lithium enterprises do more iron phosphate inventory to promote the upward price of iron phosphate.

In terms of lithium iron phosphate, China produced 50714 tons of lithium iron phosphate in March, down 4.9% from the previous month and a year-on-year increase of 97.9%, according to SMM. The main reason is that the production capacity of large factories of lithium iron phosphate increased in March, but the epidemic situation in various parts of the country was repeated in March, and the supply of raw materials and shipments of some enterprises were limited. At the same time, the end price of lithium iron salt gradually entered the inflection point, and the high price of lithium iron phosphate stabilized. And the downstream procurement demand for lithium iron phosphate weakened, resulting in a decline in the overall production and sales of lithium iron phosphate. Production of lithium iron phosphate is expected to be 41429 tons in April, down 18.3 per cent from the previous month and up 50 per cent from a year earlier. "View details

However, taking into account the current situation of supply and demand of lithium iron phosphate, although the terminal is affected by negative extreme shortage, material inventory and high prices, the demand for upstream procurement has weakened, and the material end production has also declined, but lithium salt still supports the price of lithium iron phosphate, and the price of lithium iron phosphate is expected to stabilize in the future. "View details