SMM

In October, China's iron phosphate production increased 6% MoM and was up 81% YoY. Supply side in October, first and second-tier iron phosphate companies had saturated orders, even requiring overproduction to meet deliveries. The demand for iron phosphate was strong, coupled with the winter stockpiling period for fertilizers, leading to tight supply of upstream raw materials such as phosphoric acid and industrial monoammonium phosphate. This caused an increase in phosphorus resource prices and raised the cost of iron phosphate. However, iron phosphate companies' attempts to raise prices had little effect. In October, downstream LFP orders were numerous, leading to increased demand for iron phosphate. Some integrated companies even faced shortages in their self-supplied iron phosphate and chose to purchase externally to supplement. Iron phosphate production is expected to continue increasing in November, driven by the demand for LFP. The production outlook for iron phosphate is optimistic, but losses remain difficult to reverse. China's iron phosphate production is expected to increase 5% MoM and be up 109% YoY in November.