SHANGHAI, Jan 12 (SMM) - The domestic lithium hexafluorophosphate (LiPF6) output stood at 9,937 mt in December, down 12% MoM. On the demand side, the demand for new energy vehicles slowed down in growth with the removal of NEV subsidies. This, coupled with the destocking activities of battery cell makers at the end of the year and the upcoming Chinese New Year holiday, resulted in bearish sentiment on LiPF6 prices. Therefore, the downstream enterprises generally stood wait-and-see, and the sluggish demand was reflected in poor new orders for LiPF6 manufacturers. On the supply side, some manufacturers with long-term orders to deliver still maintained high operating rates, but some manufacturers operated at a reduced capacity to control their inventories. Altogether, the market supply decreased.
In January, the upcoming CNY holiday and the suspended logistics have precipitated a decline in downstream procurement of raw materials, and the demand will continue to be weak. In terms of supply, leading LiPF6 enterprises mainly trimmed their production capacity just to ensure the delivery of orders on hand, while some enterprises halted the production for holidays or maintenance. In this scenario, the market supply is expected to decline further. SMM estimates that China's lithium hexafluorophosphate output will be 8,517 mt in January, a decrease of 14% month-on-month.
