China Iron phosphate output in October and forecast for November

In October, China's iron phosphate production reached 115,110 mt, down 0.9% MoM and up 20.5% YoY. Production in the first ten months surged 69.5% YoY. Market demand was lower than expected. Downstream LFP enterprises reduced their procurement of raw materials and operating rates, and digested finished product inventory. The decrease in downstream demand led to a decline in iron phosphate production. In terms of cost, production costs slightly decreased in October, mainly due to the decrease in prices of iron source ferrous sulfate and oxidant hydrogen peroxide. Due to low sales prices, iron phosphate enterprises continued to operate at a loss, and their production enthusiasm was at average level and productions are scheduled according to orders. Due to continuous destocking by producers in the entire industry chain, the demand for iron phosphate continued to decrease. It is expected that the production of iron phosphate in November 2023 will be 109,700 mt, down 4.7% MoM and up 17% YoY.