SMM Report on June 11:
This week, electrolyte prices remained stable, with average prices for ternary, LFP, and LMO electrolytes at 29,350 yuan/mt, 27,600 yuan/mt, and 21,900 yuan/mt, respectively. Cost side, the earlier decline in lithium carbonate prices gradually transmitted, leading to a reduction in lithium fluoride prices and weakening raw material cost support for LiPF6. Meanwhile, downstream battery cell enterprises continued to strictly control procurement costs, putting pressure on electrolyte producers' profit margins. Their low acceptance of high-priced LiPF6 sources and strong willingness to push for lower prices combined to drag down LiPF6 prices. The solvent segment weakened in tandem, as upstream ethylene oxide prices pulled back significantly, driving down prices of related solvent products. However, during the previous raw material price hike cycle, electrolyte companies were unable to fully pass on the added costs to the battery cell segment, leading to passive compression of profits. Therefore, the slight pullback in upstream raw material prices this round has not significantly impacted electrolyte prices, which remained stable in the short term. Supply-demand side, orders for new car models in the EV market continue to be transmitted, with demand showing upward expectations. Meanwhile, steady rigid demand in the energy storage sector and gradually expanding demand are expected to sustain increases in downstream battery cell production schedules, and electrolyte production will rise in tandem with incremental demand. Going forward, as lithium carbonate prices have rebounded in recent days, LiPF6 costs are expected to gain support, and prices may stop falling and stabilize. Supported by raw material cost support and downstream demand, electrolyte prices are expected to remain stable in the short term.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lu Yanlin 021-20707875
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
Chen Bolin 021-51666836
Wang Yizhou 021-51595909
