SunSirs: In September, the Ferrous Lithium Phosphate Market Saw a Weak Decline, with a Decline of 11.38%

Price trend

According to data monitored by SunSirs, as of September 25th, the price of high-quality power grade ferrous lithium phosphate had been weak and declining. As of September 25th, the average price of ferrous lithium phosphate was 70,900 RMB/ton, which was a 20.34% decrease compared to the average price of 89,000 RMB/ton at the same period in early August, the decrease was about 18,000 RMB/ton. And a 11.38% decrease compared to the average price of ferrous lithium phosphate in early September, which was 80,000 RMB/ton.

Analysis review

In terms of supply and demand: Since 2023, the demand for ferrous lithium phosphate had been lower than expected, the inventory levels in the entire industry chain leading was high, causing a significant decline in prices. The number of enterprise orders decreased, and the overall industry growth rate had slowed down. As of September 25th, there were many ferrous lithium phosphate projects, which had raised concerns about overcapacity. In 2023, the demand for ferrous lithium phosphate was weak, and overcapacity would inevitably intensify market competition. From the long-term trend of the demand side, the market's demand for positive electrode materials had improved, the demand for ferrous lithium phosphate would gradually recover.

From the curve, it can be seen that ferrous lithium phosphate showed a continuous downward trend recently. The price in August was 89,000 RMB/ton, and the price in mid September was 71,300 RMB/ton. The upstream lithium carbonate price continued to decline, and the procurement and transaction markets were cold. Downstream demand was flat, driving the price of ferrous lithium phosphate to decline.

Future outlook: The potential of China's new energy vehicle market is enormous, and its development is becoming increasingly mature. Power batteries accounted for about 30% of the cost of new energy vehicles, with a relatively high proportion of positive electrode materials. Ferrous lithium phosphate has the characteristics of high safety and low production costs. In recent years, the development situation had been improving, and with the continuous improvement of technology, the market share of ferrous lithium phosphate had also been continuously increasing.

Market outlook

Ferrous lithium phosphate analysts from SunSirs believe that in the short term, ferrous lithium phosphate is mainly subject to weak fluctuations and limited room for growth. In the long run, ferrous lithium phosphate still has a good growth momentum. In the first half of 2023, the proportion of ferrous lithium phosphate shipments was relatively high, and China's positive electrode materials were growing rapidly. Due to the price advantage of ferrous lithium phosphate and the support of automotive policies, the position of the positive electrode material industry will also be further enhanced.

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