SHANGHAI, Aug 15 (SMM) –
China produced 122,000 mt of iron phosphate in July, down 1.6% MoM and up 76.5% YoY. In terms of the market, LFP producers refilled a small amount of iron phosphate in the first half of July, but purchased less raw materials and consumed their stocks in the second half of the month, owing to falling lithium carbonate prices. Feeling impact of weaker-than-expected replenishing demand from LFP, the production and sales of iron phosphate inched lower in July. In terms of costs, in phosphorous chemical market, phosphoric acid prices hiked, so did prices of ferrous sulphate and hydrogen peroxide. Therefore, the overall costs edged higher by 300-500 yuan/mt.
In August, power rationing may linger. Battery cell manufacturers postponed pick-up of goods, leading to moderate production enthusiasm of downstream LFP makers. It is estimated that the output of iron phosphate in August will reach 120,400 mt, down 1.3% MoM and up 58% YoY.
