SMM Analysis: Lithium Hexafluorophosphate Prices Rallied to above 300,000 yuan/mt amid Rising Costs

SHANGHAI, Oct 13 (SMM) - Since September 19, the spot quotation of lithium hexafluorophosphate has kept going up. As of October 13, its spot quotation has risen to 296,000-305,000 yuan/mt. Its average spot price hit 300,500 yuan/mt, an increase of 38,000 yuan/mt or 14.48% from September 19. 
In particular, the spot quotation of lithium hexafluorophosphate recorded a daily gain of 10,000 yuan/mt for three consecutive days after the National Day holiday. 

The main raw materials required for the production of lithium hexafluorophosphate are PCl₅, HF and LiF. Therefore, changes in the prices of PCl₅ and LiF will affect the cost of lithium hexafluorophosphate. According to SMM survey, PCl₅ is still in tight supply, keeping its prices in an upswing. The commissioning of new PCl₅ capacity, which was originally scheduled to take place in the second half of the year, will be delayed to the end of October at the earliest.  

Steadily climbing prices of lithium carbonate, which is the main raw material of LiF, shored up LiF prices as well. LiF is currently offered between 880,000-890,000 yuan/mt.  

SMM data showed that the average spot price of domestic battery-grade lithium carbonate was 523,500 yuan/mt today.

Therefore, growing cost is the main driver of this round of lithium hexafluorophosphate price rise.  Since 2022, many companies have announced plans for new lithium hexafluorophosphate capacity. It was reported earlier that the lithium hexafluorophosphate market may face risks of overcapacity in the future based on the expansion plans that have been released.  

However, Do-Fluoride New Materials Co., one of the leaders in the Chinese lithium hexafluorophosphate industry, argued that the planned lithium hexafluorophosphate capacity would not lead to severe overcapacity. Some industry insiders pointed out that most of the new capacity is still in the theoretic stage.