SMM Data: China’s Iron Phosphate Output In August And Forecast For September

SHANGHAI, Sep 15 (SMM) – In August, China's iron phosphate production reached 121,700 mt, with a decrease of 0.2% MoM and an increase of 59.8% YoY. The cumulative year-on-year growth stood at 91%. In terms of the market, lithium carbonate prices declined in August, leading LFP enterprises to reduce raw material purchases and focus on inventory digestion. As a result of decreased procurement activity by LFP enterprises, the demand for iron phosphate was suppressed, resulting in a slight decline in production and sales compared to July. On the cost side, production costs increased in August. The prices of phosphoric acid and industrial-grade ammonium phosphate, as well as other auxiliary materials such as hydrogen peroxide, rose. Overall, costs increased slightly by 400-500 yuan/mt. In September, with high production costs, the enthusiasm for iron phosphate production weakened, and production plans were arranged according to orders. Additionally, new production capacities that came online in the first half of the year will contribute a small amount of incremental output. It is estimated that in September 2023, iron phosphate production will reach 127,000 mt, with an increase of 4.4% MoM and an increase of 41.2% YoY.