SMM

China's December iron phosphate output was 79,900 mt, down 24% MoM and 1% YoY, yet 2023 output was up 56% YoY. Lower LFP demand reduced iron phosphate production and sales. December saw LFP firms slow operating rates amid weak demand, cutting iron phosphate procurement. This forced producers to reduce or stop production, keeping inventories low and supply down. Despite stable raw material prices, negative profit margins dampened production incentives for iron phosphate businesses.
In January 2024's off-season, iron phosphate firms are likely to keep cutting operating rates. China's forecasted iron phosphate production for the month is 71,000 mt, down 11% MoM but up 14% YoY.