Monthly report: Wet separator prices likely to see bottom by the end of this year (06.23-06.29)

Battery separator market preformance is weak this week. Policies relating to China's subsidy reductions for new energy vehicles has prompted lithium battery makers to adjust the scale of production, thus bringing impact to the separator market. Some separator makers indicate that operating ratio is only at around 30 percent to 50 percent due to lack of orders. According to industry people, given the dip of dry separator prices last year, large producers are all setting up wet separator expansion project, which will lead to an overcapacity of wet separator and possibly driving price to the bottom by the end of this year. Prevailing prices for dry separators are 1.5-2.0 yuan, wet separators 2.0-3.0 yuan, dry coating 2.0-3.0 yuan and wet coating 4.0-5.0 yuan. Recap of company news: Qingdao Lanke Separator Material Co., Ltd will add 20 production lines with an annual production of 1 billion square meters, which is expected to go into produciton in 2019. Shanghai Dinghao New Material Technology Co., Ltd will build 20 new lithium battery separator coating production lines.