SMM, January 26:
In January, domestic iron phosphate production decreased 10% MoM, up 171% YoY.
Supply side in January, most iron phosphate enterprises maintained normal production during the Chinese New Year holiday to fulfill orders, while a few were affected by hardware facilities during the holiday, leading to production suspensions or equipment maintenance, resulting in a decline compared to December. In terms of logistics, iron phosphate enterprises maximized shipments before logistics suspension to ensure sufficient raw materials for downstream LFP enterprises during the suspension period.
Raw material side, prices of phosphoric acid and industrial-grade MAP showed relatively small changes, ferrous sulphate prices remained high, and iron phosphate prices in January increased compared to December.
Demand side, LFP production demand did not experience a sharp decline, with production remaining stable among first- and second-tier LFP enterprises.
In February, due to delayed logistics during the Chinese New Year and inventory accumulation, coupled with the traditional off-season, production plans among iron phosphate enterprises vary, and total production is expected to decline further. February iron phosphate production is expected to decrease 10% MoM, up 235% YoY. 
SMM New Energy Research Team
Cong Wang 021-51666838
Rui Ma 021-51595780
Ying Xu 021-51666707
Disheng Feng 021-51666714
Yujun Liu 021-20707895
Yanlin Lü 021-20707875
