SMM News, March 5:
Electrolyte market prices declined this week. Average prices for electrolyte for ternary power battery, LFP, and LMO were 31,750 yuan/mt, 30,000 yuan/mt, and 23,250 yuan/mt, respectively. Cost side, prices of LiPF6 and some solvents—core raw materials for electrolyte—pulled back this week. On the one hand, electrolyte enterprises still held a certain level of raw material inventory, and overall purchasing enthusiasm was weaker than the expected pace of demand growth. On the other hand, electrolyte enterprises faced relatively high cost pressure and showed low acceptance of raw material prices, with a strong desire to bargain down prices. Coupled with relatively high inventories at some raw material enterprises and strong willingness to sell, prices of some raw materials declined. As raw material prices pulled back, electrolyte production costs moved down in tandem, pushing electrolyte prices lower. Demand side, as post–Chinese New Year work and production resumptions continued to advance, and downstream automakers stockpiled in advance for new car model launches, overall demand for battery cells is expected to rebound, further boosting demand for electrolyte procurement. Supply side, electrolyte enterprises continued to follow the “produce based on sales” model. Driven by recovering downstream demand, enterprises are expected to raise production schedules based on order conditions, with production expected to increase in tandem. Overall, constrained by the generally weak bargaining power of the electrolyte industry, and affected by the current supply-demand pattern and cost-side price fluctuations, electrolyte market prices are expected to remain in the doldrums in the short term.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lv Yanlin 021-20707875
Zhou Zhicheng 021-51666711
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
Chen Bolin 021-51666836
Wang Yizhou 021-51595909
