SMM Weekly Review: Industrial Ammonium Prices Suddenly Rise, Lithium Carbonate Prices Trend Downward, LFP Cost Impact Significant] Recently

Published: May 17, 2024 18:19
[SMM Weekly Review: Industrial Ammonium Prices Suddenly Rise, Lithium Carbonate Prices Trend Downward, LFP Cost Impact Significant] Recently, LFP (power battery) prices have been trending downward, mainly due to a significant decrease in lithium carbonate prices this week. The price fluctuations of LFP are based on raw material price volatility, and there have been no significant adjustments in RC recently...

SMM May 17 News:
[LFP] Ammonium Phosphate Prices Surge Suddenly, Significantly Impacting LFP Costs

This week, phosphate prices on the raw material side remained stable, while ammonium phosphate saw a significant increase. The supply of both phosphate sources is currently tight. The price increase of ammonium phosphate is mainly due to insufficient early stockpiling of water-soluble fertilizers in Xinjiang, increased demand in May, high demand for fertilizer exports, and a rebound in demand in the new energy market in April and May. The increased demand and insufficient supply have led to a recent rise in ammonium phosphate prices. Currently, LFP companies may face a shortage of raw materials for ammonium phosphate procurement. However, the price of LFP has not shown a significant increase and remains suppressed by LFP (power battery) costs. It is expected that LFP prices will not see a significant rise in the future, and the current loss situation of LFP companies will be difficult to change.

This Friday, the price of LFP was 10,220-10,950 yuan/mt, with an average price of 10,585 yuan/mt, up 25 yuan from a week ago.

[LFP (power battery)] LFP Recently Affected by Lithium Carbonate Prices, Processing Fees Show Significant Divergence

Recently, LFP (power battery) prices have been declining, mainly due to a significant drop in lithium carbonate prices on the raw material side this week. The price trend of LFP (power battery) fluctuates with raw material prices, and there have been no significant adjustments in processing fees recently. Some battery cell manufacturers are currently inviting bids for H2 LFP or preparing to start bidding at the end of May. The processing fees for high-quality products from leading LFP plants are higher, while ordinary product processing fees are around 15,000-16,000 yuan, with significant differences due to different product generations and performance focuses. The market prices for LFP (power battery) are highly polarized.

This Friday, SMM LFP (power battery) prices were 41,800-43,350 yuan/mt, with an average price of 42,575 yuan/mt, down 850 yuan from a week ago.

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