Weekly Report | Terminal demand continues to recover, lithium salt prices fluctuate and operate（6.12

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LFP：

This week, the price of Lithium carbonate remained stable, and the cost side did not change much. The price of Lithium iron phosphate remained stable. When the price of Lithium carbonate is unknown, the wait-and-see sentiment of upstream and downstream has increased. However, under the influence of just demand, the demand has not declined, and the overall market is still developing well. At present, the Lithium iron phosphate industry is struggling to survive. Under the condition of oversupply, the battery factory continues to lower the price of Lithium iron phosphate processing fees. Lithium iron phosphate enterprises have to lower the price of Iron(III) phosphate in order to transfer pressure, which ultimately leads to the loss of Iron(III) phosphate and Lithium iron phosphate enterprises. In terms of market news, Fangyuan Co., Ltd. plans to change its investment project to Phase I, which is mainly to build a 30000 ton battery grade Lithium carbonate and 46000 ton Iron(III) phosphate precursor project, and Phase II, which is mainly to build a 40000 ton Lithium iron phosphate cathode material project; ST Industrial Intelligence plans to invest in Lithium carbonate, Lithium iron phosphate and other projects in Yichun, Jiangxi.

Ternary materials: 

This week, the quotation for ternary materials will maintain stable operation. From a market perspective, most digital end products are within the delivery period, and the company's construction situation is still good. The recovery of demand for power end is relatively slow, and overseas battery manufacturers have not made significant incremental actions. The change in high nickel ternary production is relatively small, and the medium and low nickel market has experienced a certain degree of recovery driven by domestic demand. From the perspective of the future market, it is expected that the production and operating rate will slightly increase in June compared to the previous month, but the price increase will be limited, and there will also be some differentiation within the industry.

Ternary precursor: 

This Wednesday, the precursor quotation will maintain stable operation. In terms of raw materials, the quotation of Nickel(II) sulfate fluctuated and remained stable, and there was no obvious change in short-term supply and demand, which could not form an effective support for its price. The quotation of Cobalt(II) sulfate continued to rise. The hoarding of sulfuric acid diamonds and hydrogen oxide diamonds in the market played a certain role in promoting the price of salt drilling. In terms of precursor production, there has been a slight increase in the shipment of medium and low nickel products, with the main focus on executing existing long-term orders. The increase in raw material prices has a weak impact on the precursor process, and material prices have relatively little change. It is expected that the subsequent increases will change at the same frequency as ternary materials.

Lithium Carbonate: 

The domestic Lithium carbonate price was stable and slightly fluctuated this week, and the spot transaction activity was low during the week, which was mainly affected by the weak price of lithium carbonate in Wuxi electronic disk. Some unstable traders were active in shipping, leading to a small decline in spot prices. Downstream material factories are still not willing to replenish their stocks. They should be more cautious and wait and see or bargain hunting. As of this Friday, the mainstream price of lithium carbonate (99.0% of industrial grade) on the market was 2.9-3.1 million yuan/ton, unchanged from last week, the price of lithium carbonate (99.5% of battery grade) was 3.05-3.2 million yuan/ton, down 25 thousand yuan/ton from last week, the price of lithium hydroxide (coarse particles) was 2.92-3.12 million yuan/ton, up 2000 yuan/ton from last week, and the price of Lithium hydroxide (micro powder grade) was 3.02-3.22 million yuan/ton, up 2000 yuan/ton from last week. In terms of supply, Spodumene smelting enterprises produced normally this week, and some small mica smelting enterprises were still in a state of shutdown. With the temperature rising in Qinghai, Lithium carbonate increased seasonally, and the overall supply of the industry was stable. In terms of demand, after the spot price fell slightly, downstream enterprises showed an obvious wait-and-see mood in order to avoid purchasing high priced raw materials, and did not show an obvious receiving mood in the day. In addition, some downstream enterprises said that the growth of terminal orders was relatively limited, and their willingness to replenish stocks was still not high. It is expected that the price of lithium carbonate will fluctuate slightly next week.

The overall change in the separator market is not significant, and with the gradual increase of overseas battery manufacturers, the demand for wet processes overseas has steadily increased. In addition, the domestic dry process continues to penetrate the energy storage market, and the demand for dry process is further increasing. It is expected to experience further outbreaks in the second half of the year. Currently, the overall market supply is partially tight, and some leading enterprises maintain full production capacity. With the release of production capacity from mainstream dry process factories, supply and demand balance can still be maintained.

In terms of price: Currently, the overall market price is relatively stable, and downstream demand is supported. Currently, new manufacturers are still in the stage of production line debugging and downstream verification, which has not caused a substantial impact on the current separator price.

In terms of enterprise dynamics: Dongfeng Corporation has released the latest announcement on its controlling subsidiaries Hunan Bosheng and Yancheng Bosheng's outward investment. According to the announcement, Hunan Bosheng has signed the "Investment Promotion Project Contract" with the Management Committee of Loudi Economic and Technological Development Zone, and Yancheng Bosheng has also signed the "Investment Cooperation Agreement" with the Management Committee of Yancheng High tech Industrial Development Zone.

This week, the anode market has remained stable, with many anode factories producing according to plans and a significant increase in downstream order volume. However, the market is mainly focused on price comparison and negotiation, and there is still a strong wait-and-see sentiment. Currently, the anode market is highly competitive, and manufacturers with more complete cost control will have an increasingly obvious advantage. Currently, new players are still joining, with more targets positioned in the mid to high end negative electrode market. In terms of demand, with the release of data on the production and sales of new energy vehicles in May, both month on month and year on year have increased, and terminal demand is gradually improving. It is expected that the order volume of negative electrode materials will continue to increase.

In terms of raw materials, the price of needle coke remained stable this week, with manufacturers producing normally and mainly clearing inventory through shipment. Downstream demand was slightly weak, with a small amount of low-priced replenishment entering the market; The market price of low sulfur Petroleum coke has risen steadily, and the supply of high-quality low sulfur coke has decreased, but the overall demand for low sulfur coke has a slight downward trend. It is expected that the low sulfur coke market will continue to operate weakly and stably in the short term.

In terms of graphitization: With the improvement of the operating conditions of negative electrode enterprises, there are slight signs of recovery in the graphitization foundry market. The number of long-term orders in hand by enterprises has significantly increased, and it is expected that the graphitization price will gradually stabilize. Currently, the mainstream transaction price is between 95-11500 yuan/ton.

Overall, although the anode price game is still ongoing, the overall market is steadily recovering.

This week, the demand for electrolyte in the market remained stable and positive, and market sentiment gradually improved. The operating rate and shipment volume also showed a slight increase; This week, the price of electrolyte remained basically stable without significant changes.

In terms of raw materials, the market demand for Lithium hexafluorophosphate has increased, the market operating rate has increased, some enterprises are close to full production, and some enterprises have also begun to resume production, and the market continues to improve; Fluorine prices remained basically stable this Saturday without significant fluctuations.

The demand for solvents in the market has increased, and the market continues to improve. This week, the price of DMC has slightly increased, with a floating range of around 200 yuan/ton. The prices of other solvents are basically stable. The demand for additives in the market has increased, the operating rate of the VC market has increased, and prices are basically stable.

In the short term, the overall market performance of electrolytes is relatively good, and market demand continues to increase.