SMM Analysis Of China Iron Phosphate Production In May And Forecast For June

In May, China's iron phosphate production was 163,300 mt, up 19% MoM and up 67% YoY. The production and supply of iron phosphate producers increased significantly in May, and demand was also steadily growing, driven by the increase in downstream LFP orders. On the cost side, after mid-May, the price of industrial ammonium surged due to a shortage of water-soluble fertilizer supply in Xinjiang, while the price of phosphoric acid remained stable. The cost of iron phosphate produced by the ammonium process increased significantly. On the supply side, most iron phosphate producers saw an increase in orders and operating rates, while a few producers experienced a decline in production due to costs, prices, and periodic maintenance. On the demand side, in May, downstream LFP plants saw a significant increase in energy storage orders, while the growth rate of LFP demand in the NEV market slowed. The order volume for iron phosphate producers was relatively saturated, and overall demand for iron phosphate in May was good. The price of iron phosphate also gradually strengthened in May due to rising costs. The market outlook for June will weaken, with downstream focusing on clearing inventory. Iron phosphate production in June is expected to decline, with an estimated output of 144,600 mt, down 12% MoM and up 19% YoY.