In November, China's iron phosphate production increased by 12% MoM and 122% YoY. On the supply side, iron phosphate enterprises basically completed their production plans in November, with some enterprises receiving orders exceeding their actual capacity, choosing to either overproduce or reduce orders based on the situation. Additionally, driven by the increase in new energy demand, there was a shortage of industrial ammonium during the winter stockpiling period in November, leading to a rise in industrial ammonium prices and an increase in iron phosphate costs. Due to the change in the supply-demand relationship between iron phosphate and LFP, the sentiment to stand firm on quotes among iron phosphate enterprises with prolonged losses has strengthened. The demand for iron phosphate from downstream LFP in November was considerable. Some high-quality iron phosphate enterprises had limited actual capacity, and there were even cases of supply tightness.
It is expected that iron phosphate production in December will slightly decline MoM, but the estimated production in December will still increase by 195% YoY compared to the same period in previous years.
